How Much Is Your House Worth in 2023?

Written by Adele MacGregor Reviewed by Graham Norwood

3rd Jan 2023 (Last updated on 16th Mar 2023) 8 minute read

What is Your House Worth in 2023?

The property market has seen an incline in property prices overall, with reports in November 2021 of the average property price in the UK sitting at over £250,000.

The property market is never static and house prices have been rising year-on-year, with many homes skyrocketing in value from their worth just a decade ago. This however cannot be counted on for every home, with location, size, age and condition remaining key factors in valuing a property.

During a “regular” year, there are property market shifts and trends which happen regardless of the political landscape. However, the past two years have seen the impact of both Covid-19 and Brexit on the housing market.

What is worth remembering is that ultimately, a property is worth what a buyer is willing to pay.

Starting Point: Do Your Own Research

Before you do anything else, there are a few basic steps you can take to help you find out how much your home is worth. Conducting your own research can give you a great starting point to valuing and setting a sale price for your property.

Explore the Local Area

Start by researching local house prices, reviewing how much similar properties have sold in your area. The more specific you can be with the type and age of the property, the location and timing of the sale, the more accurate the estimate it is likely to be.

House prices fluctuate often, so the more recent the sale has been, the more accurate the estimate will be. Make sure you have a range of examples to ensure you get a good idea of what the average value is.

Asking Price vs Selling Price

When doing this research, be sure to note the Asking Price vs Selling Price. By this, we mean looking at what they were listed for, compared to the price they actually sold for. Compare these prices and review how many price cuts it took to get a sale. Were they overpriced to begin with?

Ask the Neighbours

If you have a good relationship with your neighbours, why not ask about house prices in the area and see if they have any advice or rough estimates that you can use as a basis for pricing your own home.

Are Online Estimates and Calculators Reliable?

Sites such as Zoopla and Rightmove can provide an estimated guide price based on analysis of property data in the UK.

These sites have great tools for researching house prices and will allow you to look back on how much your house sold for in the past. Have a look at what similar properties in your area have sold for in the last 12 months to give you an idea of what buyers are willing to pay.

Keep in mind that many online estate agents and property portals will not be local to your area and rely on house sale figures from sources such as the Land Registry. This will not always give an accurate reflection of house prices in the area.

Furthermore, L&C state on their website regarding their own house price calculator that the figures provided are an indication based on last known sale and house price inflation number, noting; “They are not a substitute for a professional valuation and should not be used as a basis on which to sell or buy a property."

Should I Get a Professional Opinion?

Seeking the expertise of a professional valuer or property surveyor is recommended if you want to obtain the most accurate valuation on your home. Be aware that you will have to pay a fee for this service.

A home valuation from an expert can act as a guideline for pricing your property. Local information such as local schools, public transport, noise and crime levels will all come into play when setting a price for your property. Experts often have access to data and information that could be essential to determining the value of homes in your area.

Estate Agents

Estate agents local to the area will have a better knowledge of house values and what properties have sold for recently. However, be aware that they may suggest an unrealistic price to entice you to use their services.

With this in mind, it is worth looking around and getting several opinions. A study by the Department for Business, Energy & Industrial Strategy found that 75% of sellers obtained a valuation from more than one estate agent.

What If Your House is Worth Less Than You Expected?

Following your research, valuations and discussions with estate agents, you may find that your house is valued lower than you expected. Many house prices will increase in value over time, but others may not and some may even decrease in value.

Although this can be disappointing, there are a number of ways you can increase the value of your home. You may have already undertaken renovations so make sure you factor this is in when pricing your property.

Having work done to your home can have the potential to add substantial value to your home, allowing you to set the price of the property higher.

• Repairing any major structural issues
• A new or updated kitchen
• Updating or replacing the bathroom
• Obtaining planning permission for extensions or other work
• Making improvements to the garden
• Giving “kerb appeal” to the front of the house

Consult with your agent before undertaking expensive and lengthy work, such as an extension. It is possible to ‘over develop’ a property - for example, by giving it a large number of bedrooms while it has only a small garden. A good agent will advise on what renovations will produce the best returns when you sell.

You should also think carefully about any work that may require a party wall agreement as you would need to consider Party Wall Surveyor costs. This could ultimately increase the overall cost of the renovations. If you sell your home for less than your asking price, you may end up losing money due to these added fees.

Creating a Selling Strategy

When it comes to pricing your home, it is advised that you work with your chosen estate agent to create a selling strategy.

This should include how quickly you want to sell, your ideal selling price, your lowest selling price, if there is any added value to the home and if you can afford to wait for a higher offer.

Below are a few factors you may want to keep in mind when pricing your home:

• Try to emotionally detach yourself. It can be easy to get caught up in fond memories, the money spent on the home and how much you envisioned selling it for.
• Do not panic if it takes a while to get an offer but do create a backup plan for if your house doesn't sell.
• Regardless of the value of your home, a property is likely to sell far quicker if the price entices keen buyers.
• Selling to first-time buyers will also speed up the process, as there will be no property chain on their side and are often ready to move in quickly.
• Naturally, nobody wants to lose money on their initial investment, but there is also the risk of the property not selling if it is priced too high.
• Be aware that if your property is on the market for a considerable length of time, it may cause prospective buyers to question whether there is something wrong with the home.

Prepare for Buyer Negotiations

Make sure you price your home with negotiations in mind. What is the lowest you will accept and what is the price you’d like to realistically sell your home for?

Almost all buyers will presume there is room for negotiation of the listed price so be aware that a potential buyer may submit a considerably lower offer. Zoopla found that the average home sells for 3.9% less than the asking price.

Buyers may also offer lower again after their initial offer is accepted. Nearly one in five (18%) of buyers reduce their offer, usually as a result of an issue flagged in the property survey report or a lower than expected mortgage lender’s valuation.

Negotiating is par for the course when selling your home, but there are some ways you can prepare to ensure you get the right price for your property.

• Take advice from your estate agent whether the market conditions allow you to set a higher asking price in the expectation that offers will be lower.
• Remember that offers are not legally binding until contracts are exchanged and you do not have to accept any of them.
• Note that if you are selling with an estate agent you will not be negotiating directly with the buyer. This will be done via the estate agent who will negotiate on your behalf.

Consider the Cost of Selling a House

When pricing your home for sale, you must also consider the various costs involved in selling a house, which we have listed below.

1. Estate agent fees

High-street estate agents generally charge between 1% to 2.5% of the final property on average.

2. Conveyancing

The average conveyancing solicitor fees for selling a home is around £1,000. These are the legal fees associated with selling your home. (This figure is based on the average UK house price of £232,797 and includes VAT at 20%).

3. EPC

Energy Performance Certificates (EPC) cost between £60 and £120 depending on your local assessor's price. This will report the energy efficiency rating for your property and whether it can be improved.

Next Steps of Selling a House

This has been part of our selling a house guide. In our next article, we look at getting your home ready for selling. Find out more by reading: Preparing Your Property for a Sale