Valuing a Property
Discussion
I've seen a property that's not on the market but it's in a neighbourhood that I grew up in, so know fairly well.
To my eyes, the house hasn't actually been upgraded or maintained in any way. I think it doesn't even have double glazing as far as I can see. The back (what I can see of it) looks overgrown and the house itself has bits falling off the once pebble dashed front. A window is boarded up too. I see bins outside so it looks like someone must live there?
How much, percentage wise, are we looking at it being of less value? If a valuation of that kind can even be done?
The area post code is WD 24 (6SG) if that is of any help?
To my eyes, the house hasn't actually been upgraded or maintained in any way. I think it doesn't even have double glazing as far as I can see. The back (what I can see of it) looks overgrown and the house itself has bits falling off the once pebble dashed front. A window is boarded up too. I see bins outside so it looks like someone must live there?
How much, percentage wise, are we looking at it being of less value? If a valuation of that kind can even be done?
The area post code is WD 24 (6SG) if that is of any help?
Bluebarge said:
So, needs a new window-pane, a bit of render and the garden needs a haircut. Discount of a few hundred to a grand unless survey reveals something more serious than cosmetic tidying.
The answer to the question OP is it's worth what the market will pay, and dislike them as many people do a local EA will be best placed to know what someone will likely pay for it.
Ah the age old difference between value and worth....a value is what is has vis a vis the market. What it is worth (namely to you) is entirely subjective and will vary from buyer to buyer.
If you can find sales of similar properties it will give you a good handle on the market value.
What is it worth to you? MV of a tidied up example, less what it costs to fix up (including finance/opportunity cost), less a bit of profit? If that is the case bid that, and if someone else bids more, you are better off shot, surely?
If you can find sales of similar properties it will give you a good handle on the market value.
What is it worth to you? MV of a tidied up example, less what it costs to fix up (including finance/opportunity cost), less a bit of profit? If that is the case bid that, and if someone else bids more, you are better off shot, surely?
Rather than casting it in a negative light (natural when buying) try and put the shoe on the other foot.
If you bought the house and did the work, made it your dream home and then wanted to sell it... how much would you expect that house to go on the market for in that area?
Now, minus the rough cost of the works (be reasonable) from the value of the finished article and you might arrive somewhere around the value that may be put on the house in it's current condition.
N.B - you have to be a little sensible when doing the above. I.E if you're into mad sex parties don't include the cost of creating a dungeon dug 20ft down full of swings. Keep in mind the most it could be worth without over developing the plot.
If you bought the house and did the work, made it your dream home and then wanted to sell it... how much would you expect that house to go on the market for in that area?
Now, minus the rough cost of the works (be reasonable) from the value of the finished article and you might arrive somewhere around the value that may be put on the house in it's current condition.
N.B - you have to be a little sensible when doing the above. I.E if you're into mad sex parties don't include the cost of creating a dungeon dug 20ft down full of swings. Keep in mind the most it could be worth without over developing the plot.
Edited by FrankAbagnale on Tuesday 27th January 16:35
Now I would have said living next door to that would devalue a house. Appears not, the other Semi sold 3 years back for £275K whilst 4 doors down made £27K less! (but would appear to have a loft dormer since)
What percentage less is difficult. Obviously I would take an educated guess inside is a replumb, rewire, kitchen, bathroom, refloor, replaster. Outside Windows, door, render. If next door is worth say £300K then I wouldn't want to pay anything more than £225K. It could be a minefield.
Check land registry and ask neighbours if interested.
In reality it will go to auction, someone will buy, add full length rear extension and loft conversion and move it on for £25/50K profit. In theory.
What percentage less is difficult. Obviously I would take an educated guess inside is a replumb, rewire, kitchen, bathroom, refloor, replaster. Outside Windows, door, render. If next door is worth say £300K then I wouldn't want to pay anything more than £225K. It could be a minefield.
Check land registry and ask neighbours if interested.
In reality it will go to auction, someone will buy, add full length rear extension and loft conversion and move it on for £25/50K profit. In theory.
Interesting replies, thank you.
I'm not in a position to buy at all at present. Pure curiosity really to see what it would be valued at.
Worth? With the condition it's in at the moment I guess £200k is what I thought it would be worth.
The other curiosity in me seeing what it would be valued at is because the other properties in the same area have a big disparity in purchase prices in the last few years, like has been observed.
It may be worth me checking with Land Registry if and when I am ready to purchase. That is, if it is still available.
I'm not in a position to buy at all at present. Pure curiosity really to see what it would be valued at.
Worth? With the condition it's in at the moment I guess £200k is what I thought it would be worth.
The other curiosity in me seeing what it would be valued at is because the other properties in the same area have a big disparity in purchase prices in the last few years, like has been observed.
It may be worth me checking with Land Registry if and when I am ready to purchase. That is, if it is still available.
surveyor said:
Looks in.
Walks out....
OP - Ain't no one who can value from that.
You need to consider what tit's worth with the work done, what it will cost to do the work, and how desirable it is in general. People will overlook a lot for the property in the right spot.
Nah - pretend you are doing a Homebuyers Report.......think of a number and subtract a bit, then tell them they need an electric survey Walks out....
OP - Ain't no one who can value from that.
You need to consider what tit's worth with the work done, what it will cost to do the work, and how desirable it is in general. People will overlook a lot for the property in the right spot.
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