November 2, 2022
We break down the exact process estate agents use to value unique homes.
Valuing unique homes is, well, unique. It’s not as straightforward as listing 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 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 Lovelle, we have a clear process to help you achieve the maximum sale price. And that’s what this blog post is all about – here’s how estate agents value 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 see every day.
Often, if your home is unique, then the normal house pricing guidelines do not work.
You can’t put a price on Victorian bay windows and decorative woodwork, much as you can’t price the view looking over the countryside.
But we can use similar principles to help get the price in the right ballpark – 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 see 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 similar homes, estates or Victorian terraces in the surrounding 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 3–6 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, right?
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.
To summarise
There are numerous factors that influence the price of a 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 – in this article, we’ve given a glimpse into our process of how we value a unique home.
But there’s a lot more that goes into it, and the price you can expect to sell for depends on various factors.
So, 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 give us a call on 01472 812250 or email us at humberston@lovelle.co.uk. We’ll help you to value your home and maximise the sale price.