When you are looking to buy or sell a property it is always useful to have an understanding as to what determines the price of a property. Just because a similar sized property to your own, with three bedrooms, just a few doors down sold for a certain amount, it does not mean your property will be worth the same.
The demand and supply for individual types of property can cause large price differences between two properties, only a matter of metres away, which at a glance may seem very similar.
Take a 3-bedroomed semi-detached property for example; there can be varying styles and prices to what essentially can sound like an identical house in the same area. The price difference for the ‘same’ ‘3-bedroomed property’ could vary by over 35%.
A brand new property with the broad ‘3 bedrooms’ search engine spec could be worth around £180,000, whereas a more sought after Victorian character property with shorter supply may attract around £220,000. A 1950s property on the other hand may only fetch around £160,000 as it is ex-local authority, and some of the nearby properties may still be social housing.
Certain styles of property can be more appealing to potential buyers and will therefore attract more demand; this is likely to push the price up for the popular style of property while a more readily available, similar property, may be less desirable, attract less demand and therefore be far cheaper.
The age and facilities of a property also gives a great deal of value variation. Things like parking spaces can be important to certain buyers (such as young professional couples with company cars), yet surplus to requirement for others (such as non-drivers and elderly couples more interested in public transport links). For families with young children, a busy main road with great access to public transport will be far less appealing than a house in a quiet cul-de-sac.
Specific locations, not just post codes, will greatly affect value, drive areas, garages and appealing front garden spaces will also add to the value of a property.
A crude search for the prices of few properties with the same number of bedrooms to the one you are looking to buy or sell is therefore nowhere near an adequate indicator of the price you should be looking at.
It is extremely important to assess the property you are buying or selling in detail to avoid selling your property short or buying a property for what you think is ‘about right’ because of a ‘similar’ sale down the road when your research has ignored certain details or facilities that make your deal completely different.