Data on comparable homes
The first thing we need to know is the value of other homes that compare to yours – ones of a similar size, in a similar location, with similar features. While there are usually plenty of direct comparables for homes on estates or Victorian terraces, the challenge with unique homes, where there might be very little else like them, is getting as close as possible. The more unique the home, the greater the challenge!
We look at two types of data:
- Sold prices: How much have comparable homes sold for in the last 3–6 months? If there aren’t many of them, we sometimes have to look back further in time, then calculate a likely current value based on average price increases. Sold price data from the Land Registry is the main source for surveyors when they make their reports for mortgage lenders, so it carries significant weight.
- Current market prices: We look at similar homes for sale and consider:
1. How long have they been on the market?
2. What’s the current asking price?
3. Has the price been reduced?
Generally speaking, we expect to agree a sale at within 5% of the asking price, but the longer a home is on the market, the less likely it is to achieve this.