Before you sell your flat, you need to know how much it’s worth.
Not what you want it to be worth. And not what the estate agent wants it to be worth, either!
Your flat’s value is affected by lots of different factors.
We’ve explained what these are below.
Reasons to get your flat valued
You plan to sell it
The most common reason is because you want to sell the flat.
The valuation ensures you set it at a fair price to attract attention. It also ensures that it’s priced correctly to generate interest and sell in a decent time frame.
This is an essential part of marketing it.
Over or undervaluing your flat can drive away the right kinds of buyers and attract the wrong ones.
You plan to rent it out
Valuations are helpful if you’re renting your flat out, too.
They can be used to estimate where your flat fits the market and how much rent you should charge.
Inheriting a flat through probate
Valuation is a legal requirement of the probate process.
It’s used to calculating both how much inheritance tax you must pay and how much should be given to beneficieries.
Borrowing against it
You can borrow against the value of your flat, if you’ve bought it. This is also known as a ‘secured loan’.
The lender will want an accurate valuation for your flat as part of this process.
What impacts the value of a flat?
Location
The difference in property prices between the most expensive and cheapest parts of the UK is large.
It can be several hundreds of thousands in extreme cases.
London and the south-east of England tend to have the highest property prices.
Meanwhile, in the north-west and north-west of England, flat valuations are on the lower end.
And within the same regions or even towns, variation can still exist on a street-by-street case.
Size
Potential buyers will want details about the square footage of your flat. This gives a clear sense of how much living space there is.
All else being equal, larger flats are more valuable than smaller ones.
Anything below 500 square feet is on the smaller end. And above 700 square feet is considered large.
Type of flat
There are several different types of flat. This includes:
- Studio flats
- 1 and 2-bedroom flats
- Maisonnettes.
You also get flats in different places, for example: in tower blocks, on ground floors, above shops, etc.
Condition
Even if all the other elements are the same, the condition your flat is in is very important.
You want it to be clean, tidy and without any bad smells.
Pest infestations or weak foundations can have a hugely detrimental effect on value, for example.
Documentation
The documents associated with your flat are important. This includes the lease agreement, and the Energy Performance Certificate (EPC).
Some landlords will frown on a flat with an EPC rating lower than ‘C’.
That’s because these can’t be legally let out in the UK. So, they’ll need to take action to boost the rating.
Meanwhile, the lease length is important as well. Once it drops below 80 years, you may struggle to find a bank who will lend on this.
Sitting tenants
It’s rare for a property to be listed on the market with tenants still living there. But it does occasionally happen.
And if their rental term runs over into when you buy the flat, then it’s considered less valuable.
Most buyers want a ‘clean slate’ when they buy a flat. This means they can ‘vet’ potential tenants themselves. Or, they can live there themselves.
Market conditions
A flat’s value can move up and down depending on the time of year.
While this may seem strange, your flat is more valuable when there’s lots of potential buyers on the market.
Meanwhile, when there’s way more sellers than buyers, you’ll have to reduce your price. Timing is essential.
Facilities and amenities
Other facilities in the building that your buyer can utilise will impact value.
If you have two allocated parking spots, it’s better than one.
And if there’s a free communal gym for everyone to use, then this is something that lots of buyers will love.
How have flat prices changed in the UK?
According to Zoopla, the average price of a flat in the UK has gone up by 7% in the past 5 years.
This means that if your flat was valued at £200,000 five years ago, it’ll be worth around £214,000 today.
Meanwhile, in the past 12 months, flat prices have increased by 0.5%.
This is a relatively small increase, especially since flat valuations are on the lower end of the market.
Will flat prices continue to go up?
Most experts predict that flat prices will continue to rise.
This has been the general trend for the past few years, and there’s no signs that it’ll stop.
Especially since interest rates are expected to slowly decrease in the next couple of years.
You should pay attention to local factors that’ll scupper this, though.
For example, if there’s a major motorway being built on your doorstep, the noise pollution could reduce house value. A short lease will reduce your flat’s value.
Should I get several valuations for my flat?
Yes, it’s a good idea to get several valuations for your flat. This ensures that you don’t rely on a valuation that isn’t accurate.
The more opinions you gather, the more likely you are to make the right decision. You can calculate an average from all the opinions you get.
Average flat prices in the UK
The average value of a flat in the UK is £191,300, according to Zoopla.
This varies drastically based on where you are in the country. Here are just a few examples of different regions average flat prices:
- Essex: £219,688.
- Cornwall: £222,290
- West Midlands: £164,553
- Northumberland: £116,403
- Merseyside: £145,597
- Central London: £1,579,779.
Should you use the estate agent with the highest valuation?
Not always. You should speak to several valuers and work out the average valuation.
In several cases, estate agents will exaggerate their valuation, so you’re tempted to choose them.
But this doesn’t mean your flat will actually sell for that amount. You’re just being lured in, so they get the commission.
Estate agents that are honest and realistic tend to do a better job.
Ways to get your flat valued
Estate agent
Most estate agents offer valuations for free.
If you’re considering selling with them, they’ll visit your house and give you their opinion, based on current market conditions.
Independent valuer
You can pay an independent valuation expert to visit your flat and give their opinion.
Many people prefer this, because they aren’t looking for your commission, and are thus more likely to be honest.
Online tools
Some online tools will give you a valuation once you enter key information.
The accuracy of these tools is debated. You’ll usually need to state your location, last selling price, number of bedrooms, etc.
Looking to sell your flat fast?
Sometimes final sale price is not the priority for sellers, time frame is.
In these circumstances, selling a flat outside of your ideal time frame can cost you in other ways.
If you’re looking to sell your flat fast, We Buy Any Home can help.
We are cash buyers that can buy any kind of flat, in any location or condition, in as little as 7 days.
