Property valuations: which method is best?

Getting a property valued is an important matter, regardless of whether you’re buying, selling or looking for a mortgage. There are a number of different methods available for establishing the value of a property. This post looks into the two most popular ones: on-site valuations by a property expert and online property valuations.

Whether you’re looking to buy or sell, there is absolutely no way round getting an independent property valuation. No two properties, whether houses or apartments, are the same. And, a property’s value is not just down to its size, but a wide range of different factors.

Factors that affect a property’s value

1. Location: Location is a key factor. What’s the infrastructure like around the property? Are there schools, shops and access to public transport available nearby? Properties in desirable locations tend to be more expensive than those in less popular localities.
   
   
2. Age: The age of a property will instantly tell you a lot about its likely condition and hence its value. Newer properties generally tend to be worth more.
   
   
3. Size: The size of a property is an important factor when establishing its value. The more space or usable space it offers, the higher the price.
   
   
4. Condition and fittings: The condition and fittings inside a property can significantly affect its value.

Once you know about the factors that determine the value of a property, you can systematically use this information to boost your property’s value. Sometimes, it might be worth upgrading certain features that could significantly increase its value before putting it on the market. Being located in a good residential area, in an attractive location and being well looked-after will also increase a property’s value. In the same vein, defects, being in poor condition and a long-term neighbour dispute can significantly lower its value.

The two valuation methods

There are two options for getting your property valued: you can either use an online valuation tool, which will use the hedonic valuation method, or get a property expert to value the property on site.

Engel & Völkers’ online property valuation tool allows you to find out the value of your property in just a few minutes. This hedonic valuation tool uses databases and algorithms to estimate the value of a property based on factors such as the property type, location, age and size. It also includes a number of other factors in the valuation process, such as proximity to schools and number of bedrooms.

With a valuation performed by a professional, the property expert will actually visit the property and determine its value on site. This valuation method continues to be preferred by many because it doesn’t just include hard facts such as location, age and size, but also takes into account factors such as the property’s condition, fittings and immediate environment. Added to that, a property expert’s extensive experience will also allow them to provide advice on how to potentially increase its value there and then.

The question now, of course, is which of these methods is best for you. And the answer is that it depends on your needs. If you would just like a general idea of how much your property is worth, the online property valuation tool will be a pretty good fit. It’s quick to use and will instantly give you a rough idea of your property’s value. However, an online valuation will not take into account factors such as high-quality wooden floors or bathroom tiles that could further affect its value. The only way to make sure that these kinds of additional factors are taken into account is through an on-site valuation by an expert. This will ensure that everything relevant to your property’s value will be factored into the evaluation and provide you with your property’s actual value.

Hence, online valuations are often perfect as a first step and to get a rough idea of a property’s value. Once that’s done, our property experts will be happy to help and professionally assess your property in more detail to establish its actual value. Just give us a call or drop into our Engel & Völkers Shop. We’ll be happy to help!