How do Estate Agents Value a Unique Home?
Demystifying the process
Do you have a unique home you’re looking to sell but don’t know how much you can sell it for? Read on to find out how estate agents value unique homes.
Valuing unique homes is, well, unique. It’s not as straightforward as your typical three-bedroom home. There are a lot more factors to consider, from analysing recent data and current market conditions to taking into account stunning views, undeniably impressive architecture and other aspects.
Perhaps you bought your home over a decade ago, maybe it was a doer-upper or a restoration project, or maybe you’ve lived there your whole life. Whatever the situation and however you’ve ended up with your unique home, if you’re considering selling, it can be difficult to know what asking price is realistic.
So, how do estate agents value unique homes? At Stowhill Estates, we have a clear process to help you achieve the maximum sale price. Here’s how we go about valuing unique homes.
Why are unique homes difficult to value? There are many factors that make a home unique, from a picturesque view with your morning coffee to original Victorian architecture or a one-of-a-kind location, it’s something we’re lucky enough to see daily.
Often if your home is unique, then the normal house pricing guidelines don’t work. You can’t put a price on a Victorian bay window and decorative woodwork, much as you can’t price the view overlooking the rolling Cotswolds countryside.
But we can use similar principles to help get the price in the right ballpark – and here’s how we do it.
How estate agents value unique homes As already mentioned, valuing a unique home can be tricky. But we’ve developed a system to help you get the maximum sale price for your home. We consider the following:
• Is there any data on comparable homes?
• Price per square foot
• What is the current market condition?
• Our expertise and local knowledge
Continue reading to discover how each factor directly affects the estimated value of your home.
Is there any data on comparable homes?
Your home may be unique, but there are likely to be similar homes, estates or Georgian farmhouses in the local area, or at least somewhere in the country.
We find comparable homes and extract the data – how much have similar homes sold for in the last three to six months? And if we can’t find any results, then we check sale price data from the Land Registry for a more accurate financial report.
If there truly is no home like yours, then we take comparable data and work from there – taking into account the features of your home that make it unique.
Even if comparable homes don’t stand up to your expectations, we can use these to more accurately price your home.
Price per square foot
Typically, price per square foot is not commonly used, especially for unique homes. But it can provide a useful metric for comparison to similar homes in the area.
Price per square foot is different for each location – expect higher prices in cities and more affordable prices in the countryside. But this is just a guideline; these prices differ massively based on local amenities, location and other factors.
Buyers need to know what they’re getting for the money – we’ll add the unique architecture, stunning views and other features onto the price later. For now, it’s about valuing the property based on size – buyers love metrics, so let’s provide them with all the details.
What is the current market condition?
The market is known to go up and down like a yo-yo. When there are fewer homes on the market, the average house price is likely to increase (this is because there is less competition).
Unique homes tend to increase attraction, especially when there are fewer homes on the market. It’s not uncommon for a bidding war to occur, with potential buyers exceeding the asking price.
And although the current market condition is definitely a factor in the estimated value, unique homes are less likely to be affected by the ups and downs of the market. Good news for unique homeowners!
Our expertise and local knowledge
A good local estate agent can help maximise the sale price of your unique home. With knowledge of the local area and market, a local agent can create more realistic pricing guidelines.
And as previously mentioned, while a home may be unique, it can usually still be compared to other homes (at least to give an estimated value).
As a buyer, if one home is considerably more expensive, it’s likely to attract less attention, even if the home is one-of-a-kind. We’re not saying you need to drastically reduce the price, but the pricing could perhaps be a tad more realistic and in a similar ballpark to other, less unique homes with equivalent assets.
In summary
There are numerous factors that influence the price of a good home. For example, can you really put a price on an award-winning view in a one-of-a-kind location. But there’s a method to the madness, and a proven process to value a unique home.
If you’ve got a unique home and you’re looking to sell, or if your home is already on the market but you haven’t had much success, then get in touch with us on 03330 344 144 or drop us a line at hello@stowhillestates.com
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