When deciding how much to sell your house for, getting multiple valuations and considering the current market conditions is essential.
Getting valuations from different sources will give you a good idea of your home’s value. The housing market fluctuates, so current trends will impact how much buyers are willing to pay.
In the blog below, we’ve provided a guide through valuations, market conditions, average UK house prices and questions to ask valuers.
How many valuations should I get?
Empower yourself by getting at least two or three valuations before setting your asking price. This will give you a range to work with. You can obtain valuations from estate agents and independent valuers.
Ask for recent sales of comparable properties, too. Online instant valuation tools can also help gauge value. However, they may not account for your home’s unique features.
In-person evaluations from professionals are best. Don’t rely solely on the first valuation you receive. Get multiple options to determine an accurate price range.
What impact can the market conditions have?
Housing market trends affect buyers’ pay, so it is essential to know the conditions.
Sellers can ask for higher prices when demand and supply are low. During slower markets, you may need to lower your price to attract buyers. Interest rates also impact affordability. When mortgage rates rise, buyers’ purchasing power decreases.
Understanding the current state of the market will help you price appropriately. A reputable estate agent can advise you on this. Overall, economic factors like employment rates and inflation influence the property market, too. An uncertain outlook may dampen buyer confidence.
Consider tailoring your expectations based on the current climate.
The factors that impact average house prices in the UK
According to The UK House Price Index, in February 2024, the average price for a:
- Flat or maisonette is £227,188
- A terraced house is £229,443
- A semi-detached house is £274,252
- The detached house is £435,398
Of course, prices vary greatly depending on the exact location. However, larger family homes generally command higher prices, while flats and smaller properties are more affordable. The number of bedrooms and bathrooms, size of rooms, layout and storage space impact price, too. Unique features like annexes or double garages add value for buyers. Carefully consider your home’s specifics when pricing.
Size and Layout
The size of the rooms and layout of the house also play a significant role in determining the value. Many homebuyers today desire large, open-concept spaces. An open floor plan on the main level allows for entertaining and family gatherings. Spacious, airy bedrooms with good closet space are also preferable. Enough bathrooms for the number of bedrooms is ideal. Outdated, closed-off floorplans might decrease a home’s value in today’s market.
Storage Space
Plus, storage space is an essential factor for families. Walk-in wardrobes, built-in wardrobes, linen cupboards, and ample kitchen cabinets appeal to buyers. Integrated storage solutions and enough space to not feel cluttered are key. Intelligent storage features like pull-out pantries and slide-out shelves in cabinets boost functionality. Lacking storage or small, awkward layouts turn buyers off. Ensure your home offers modern, efficient storage when evaluating its worth.
Outdoor Spaces
Outside spaces like gardens, patios, and garages also add value. Having room for kids to play, hosting gatherings, and storing vehicles is desirable. Extensive gardens, multi-car garages, and outbuildings like studios or granny flats can significantly increase the sales price. Consider how your home’s external space compares to similar properties when pricing.
Average house prices in the UK based on location.
Location significantly influences what buyers will pay. Per the government’s February 2024 House Price Index figures, average prices by region are:
- London: £502,690
- South East England: £373, 018
- East of England: £339,144
- South West England: £316,834
- East Midlands: £241,950
- West Midlands: £242,429
- Yorkshire and The Humber: £204,754
- North West England: £213,890
- Wales: £210,717
- Scotland: £187,807
- Northern Ireland: £177,611
Within regions, rural and suburban areas command higher prices than urban locations. Proximity to top schools, transport links, green space and amenities impacts price. Compare your home to neighbourhood sales to accurately gauge its worth.
Commuter Towns
More specifically, properties in commuter towns and villages near major cities like London, Birmingham and Manchester often sell for a premium. Homebuyers are willing to pay more for the small-town atmosphere within a reasonable commute via rail or care. Villages known for their picturesque scenery, walking trails, and low crime rates are also desirable.
Coastal Towns
Coastal towns are also in demand, with seaside homes selling for higher prices. Being near the beach is a dream for many buyers. Coastal properties with ocean or harbour views can sell for up to twice as much as those without. Quaint fishing villages and beachy cottages hold great appeal.
Proximity to Schools
Areas close to top-ranked schools often see intense bidding wars and over-asking offers. Parents seek homes in the catchment areas to gain admission. Newly built suburbs also command high prices, as buyers want updated, move-in-ready homes with modern amenities.
Remote Locations
On the other end of the spectrum, more remote country locations typically have lower property values. Economically depressed areas or towns with high crime rates will deter buyers. Always compare your local market stats when pricing your house.
Are house prices currently decreasing?
In 2024, house prices are slowly but steadily declining across the UK. This is due to rising interest rates coupled with economic uncertainty. Lloyds Banking Groups predict house prices will drop by around 7% before recovering.
Affordability is stretched for buyers taking on larger mortgages. These conditions allow buyers to negotiate. Sellers who price ambitiously risk their home languishing unsold. Competitively and realistically, pricing is vital in a buyer’s market. Monitor sold prices locally to track the downward trend. Set your expectations accordingly.
Rising cost of living
The rising cost of living is also contributing to the housing slump. With food, fuel, utilities, and expenses taking up more people’s budgets, buyers have less to spend on properties. First-time buyers, in particular, are struggling to save enough for the higher deposit amounts required. Even those who can afford mortgages are opting for lower price points.
Supply is increasing
On the supply side, more vendors are putting homes on the market to take advantage of previously hot prices. This influx of inventory gives buyers more selection and room to negotiate. Bidding wars are now rarer as demand softens.
Global impacts
Global factors like the war in Ukraine, recovery from the pandemic, Brexit, and instability in financial markets also weigh on buyer confidence. People are hesitant to make big purchases amidst economic uncertainty. Rate hikes may continue to combat high inflation. This rising cost of borrowing further cools demand.
Questions to ask someone who values your house
When meeting with valuers, there are several key questions that you should ask. These include:
- What are the prices similar homes sold for recently? How does my home compare?
- Can I make any repairs or upgrades to maximise my home’s value?
- How have sales prices shifted in the local area recently?
- How long are similar homes taking to sell right now?
- What offer price do you recommend I list my home for?
- Should I expect to receive lower offers and negotiate with buyers?
- How might pending interest rate changes impact prices further?
Listen to the valuer’s expert opinions. But remember to gather multiple viewpoints before setting your asking price. With the proper preparation and pricing strategy, you can maximise your sales in today’s market. In addition to considering your selling price, you should also consider the costs of selling your house. Click on the link for more details on this subject.
