6 Tips to Avoid Losing Your Property’s Value in 2023
2023 has arrived, and its beginning could have been better for UK citizens. Inflation, high energy costs, and the continuously falling market has already posed a serious threat to the common man.
You may have heard Jeremy Hunt, UK’s finance minister, saying that our economy is going through a recession period. It means a temporary decline in the economy when industrial and trade activities are limited.
The same is going on with the real estate market. According to some experts, the UK’s housing market will freeze, and the decline is expected to be 5 to 12%. In such circumstances, how can you reduce the effects of this fall on your house?
Keep reading this blog post to find out the best methods to reduce the falling real estate market risk.
What is Property Valuation?
As the name suggests, property valuation refers to finding the market worth of the real estate. Estate agents mainly employ 3 different methods to estimate the worth of any residential or commercial property. These 3 methods are:
- Sales Comparison Approach
- Cost Approach
- Income Capitalisation Approach
Let’s have a brief overview of them together!
Sales Comparison Approach
In this approach, real estate agents compare the cost with a recently sold property in your neighbourhood. This is best for house valuation Manchester. They usually consider the properties sold within 6 months and within a radius of 1 mile.
In the cost approach, real estate valuers predict the house’s worth by its construction cost. Land costs are added to construction costs with less depreciation to determine the value of a property. It consists of the following 5 steps:
- Assuming the price of the land as it is vacant.
- Finding out the total construction cost of a new building on the land.
- Identify any depreciation accrued due to current physical conditions, deterioration, and obsolescence of the property.
- Calculate the current construction cost by subtracting the depreciation that has accrued.
- The total property value is calculated by adding the land value to the depreciated cost. (i.e., Land+Construction, Cost-Depreciation=Value).
This is mainly good for commercial property valuation Manchester.
Income Capitalisation Approach
The income approach encompasses any means of transforming a stream of revenue into a market value indicator. Capitalisation translates a predicted income into an indicator of market worth; hence, the income strategy is also known as the capitalisation approach.
Some Ways to Increase Your Property’s Value
As written above, the UK’s real market has witnessed a 5 to 12% fall in 2023. To keep your house less affected by these drastic changes, ensure your property is as good as new.
Check out the following tips you can employ that won’t only save your house’s actual worth but also help in increasing it:
- Keep yourself updated about the worth of your property
- Identify potential threats
- Keep your property clean and updated
- Regularly inspect your home
- Keep insurance up to date
- Get an expert opinion from professional real estate agents
Let’s dive straight into their details:
Keep Yourself Updated About the Worth of Your Property
The key to preserving your home’s value is educating yourself and staying up-to-date on market trends. You can take free house valuation manchester services to research houses’ worth in your area or use websites like Zillow for a free online property valuation.
Identify Potential Threats & Act Accordingly
Some of the most common threats to your property include theft, vandalism, and natural disasters. To protect your belongings from these risks, follow these tips:
- Keep an eye on your property at all times. If you can’t be there to watch it, make sure someone you trust is always monitoring it.
- Lock your doors and windows when you leave. This prevents thieves from entering your home and keeps vandals out.
- Secure valuable items in storage or hide them away in a secure location. This will help protect them from theft or damage if a natural disaster hits your area.
- Make copies of important documents and keep them in a safe place outside of your home. This way, if something does happen to your original documents, you have a backup to fall back on.
Keep Your Property Clean & Updated
This is another crucial thing in property valuation. Buyers are attracted towards well-maintained and well-furnished houses. Given below are some ways you can leave an impression that your property is under good care:
- Regularly clean your property. This will help reduce the dust, dirt, and debris accumulating over time.
- Maintain plants and flowers in a healthy condition. If they are properly tended to, they can start to decline in health and may retain their appeal to potential buyers.
- Keep all outdoor furniture and equipment clean and well-maintained. This includes patio umbrellas, pool toys, garden statues, and anything else that could be used for outdoor entertaining.
- Keep your garbage cans neatly lined up near your curb for pickup. This will help reduce the appearance of clutter and make your property more efficient to maintain.
- Keep your windows clean – both inside and out – so that you can show off your home’s best features to potential buyers.
- Clean surfaces that may collect rainwater or snow accumulation (elevators, porches, roofs). This will keep them looking tidy, as well as keep water damage at bay.
- Lastly, keep your home’s interior surfaces clean and free of dust and dirt. This will help reduce the number of allergens that can accumulate, leading to problems like asthma.
Keep Property Insurance Updated
When it comes to your home, maintaining property insurance is key to protecting its value. Here are a few tips to help you stay up-to-date on your policy and avoid losing potential money:
- Review your coverage regularly.
- Contact your insurance company if anything suspicious happens at your home.
- Keep tabs on damage reports.
- Monitor unusual activity around your home closely.
By following these tips, you can ensure that you maintain proper insurance coverage for yourself and your home – which will ultimately protect its value and financial security.
Regularly Inspect Your Property
If you are like most homeowners, you probably don’t think much about home inspections. But if you want to ensure that your property’s value remains high and you don’t have to worry about any future problems, it is important to visit your property regularly.
Conduct a thorough audit of your property, from top to bottom, from left to right. Make sure you don’t overlook anything.
Get an Expert Opinion from Professional Real Estate Agents
If you’re looking to take extra steps to increase your chances of selling quickly and for a high value, consider enlisting the help of a real estate agent or appraiser. Both professionals will be able to provide insights into the current market conditions and offer suggestions for improving your home’s appearance and functionality.
Moreover, a real estate agent is the best way for your house valuation. Make sure there is always one on your side 24/7.
The Final Note
When everything, along with the real estate market, is down in these tough times, you must adopt measures to save your property’s worth. Make sure your property is under great care. It will attract buyers and get the actual price of your property’s value.
For your free online house valuation Manchester, contact Black Stone Estate Agents. We share years of experience in the UK’s real estate market and have brought significant profits to our clients even when the market went down.
Get in touch with our experts right away!