Valuing a Home
Q - Is it possible to value our existing house on a square metre basis? My valuation and that of the estate agent differ by 30%.
A - Only new construction work can be calculated by the square metre with any accuracy. The location and condition of a house plus factors like the proximity of good schools can affect the market value. The only method is to see what similar houses in your area are fetching and base it on those figures but making adjustments for things like overall condition of the property and whether it has been well maintained.
Valuing a Plot of Land
Q - We are looking to buy a plot of land, in a small country village. The plot is 50 x 12m in size and is situated in the garden of an existing dwelling with outline planning permission for a three bedroom house and the asking price is £100,000. What could we expect to sell the property for after living there for a couple of years? And what percentage should the land cost be of the overall property value on completion?
A - There is no direct link between land costs and the market value of a house, only between the land and construction costs. Property values are determined by other factors such as the quality of local schools, the proximity of shops so each house has its own value and is not directly related to land or building costs.
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