‘Common reasons’ you might have a low property valuation - ‘poor layout’ can be key factor
Property valuation in the UK is not a simple mathematical exercise. It is a formulation of professional skill and judgement by an experienced property valuer, usually a chartered surveyor. There can be a plethora of reasons behind a property valuation ranging from the fairly common to the more unusual.
By MILLIE BULL
04:00, Fri, Nov 18, 2022
The property's location, size and accommodation, condition and state of repair, parking and proximity to local amenities etc. are all taken into account when valuing a property. Sometimes these valuations are lower than homeowners expect and are caused by a number of potentially "avoidable factors".
With this in mind, Ian Russell, director of surveying at Houzecheck has shared the reason why your home's valuation might not meet your expectations.
Check the deeds
The first thing homeowners need to check is their deeds because "the devil is in the detail".
In the UK, when a property is leasehold, like a flat, ground rents usually range between £300 and £700 per year.
If the ground rent for a property is on the higher end of this spectrum, this may be off-putting to buyers who are already facing increased mortgage rates.
Most flats in the UK are leasehold and if your property has less than 80 years left on the lease, it is considered a "short lease property" which can have a significant impact on the valuation price.
Boundaries
Similarly, when an issue arises with property boundaries, it can quickly escalate into a dispute with neighbours.
Complicated boundaries and disputes with neighbours do have the potential to reduce your valuation price, due in part to the potential legal costs associated with such a dispute.
Other reasons for a low valuation include crime rates, layout, privacy and other defects like Japanese knotweed.
Common reasons for a low valuation
Layout
Ian said: "Even if your property is large, a poor layout such as lots of small rooms crammed together or one bathroom which is only accessible through a bedroom can lower the price as the valuation will factor in a buyer’s possible need to remodel."
Neighbouring kerb appeal
Kerb appeal is vital as it's the first impression a buyer will have of your property. However, homeowners don't have control over what their neighbours' homes look like.
Ian added: "If an adjoining or nearby property is in a state of disrepair, this can have a knock-on effect on your valuation.
"The reason for this is that buyers look at the whole street, not just your home and may reasonably assume that your neighbour’s unsightly home may have a negative impact on value."
Energy efficiency rating
Energy prices are usually at the forefront of people's minds these days and if your home has a low rating, this may negatively impact a property's valuation.
Less common reasons for a low valuation
Crime rates
When choosing a property, many buyers - particularly those with children - will pay close attention to crime rates in the area.
If a home is in an area with a particularly high rate of violence and drug crimes this can lower your valuation to a significant extent.
Privacy
Most people don’t have the luxury of living in a secluded mansion but most homeowners still expect to have a certain level of privacy when at home.
If a property has privacy issues such as a direct view into the house or garden or a footpath running alongside the property, this can reduce a home's valuation price.
Japanese knotweed and rot
If your home has a defect problem with either dry rot or Japanese Knotweed, it may be worth dealing with this before getting a valuation.
If these are present, the valuation will take into account the fact that the new owners may need to pay to have these issues taken care of which lowers the valuation price.
Author: Ian Russell, Director of Surveying
