Have you wondered what goes into house valuation? What do appraisers consider when estimating the value of a house? This article discusses what goes into house appraisal, how to estimate house value with land and how much value having a garden adds to the worth of a house. Valuing a house goes beyond the structure itself. Appraisers estimate the current worth of the land on which the structure is built and other several assets accompanying the structure.
When estimating the value of a house, the appraiser factors in all other assets, machines, benefits, and level of convenience the house presents. Some houses provide extra comfort based on the level of technology installed in the systems of the house and sometimes how green the property is.
Appraisers look at
All these items provide comfort and opportunities for the new house owner. These accessories to the structure being sold are discussed below.
Land valuation is equally important as house valuation when estimating the worth of a house. The land on which a house is constructed forms a huge percentage of the value of the house.
In some cases, people buy properties mainly because of the land and not necessarily the structure. This is mostly because of the location of the land, speculated benefits in the future, planned development near the site of land etc.
It is interesting to note that some lands are even valued higher than the house on the land. This is because by nature land appreciates with time thus the value of land increases as years go by compared to the structure on the land which depreciates with time.
Some properties come with several acres of land aside from the portion the house is being built. Owners are at liberty to either sell the house together with the acres of land or give out the house alone. Appraisers will be tasked to include the value of the vast land when the entire property is being assessed for listing.
Land valuation is an important exercise that goes beyond just mathematical computations but involves a thorough understanding of related rules, regulations, and acts.
The price of a house that is mostly the one listed by sellers is a combination of the price of the land and the price of all other works done on the land which may include a house.
The value of land can be calculated in three ways namely assessed value, appraised value, and replacement value.
Land valuation is very important when estimating the value of a house because the cost of getting it wrong is very dire.
The value of a house includes the level of technology and systems in place in the house. Modern technologies are very expensive and provide the best comfort and security. When appraisers are estimating the value of a house, they take into consideration the overall security features, level of automation, and amount of technological infusion in accessing the facilities of the house. Modern technology and accurate automation systems increase the value of a house.
Some properties have very fantastic natural and environmental features like trees, river paths, hills, springs, waterfalls, beautiful birds, etc. This greenness and nature add value to the property being sold. Owners of these properties spend a lot on maintaining the natural environment. When estimating the value of such a property, this natural environment and greenness add to the value of a property.
Houses listed for sale may have plants, generators, and appliances. These items are valued and added to the final price of the house being sold. Buyers however may want to exclude these assets to know the actual value of the house itself.
There are other several things like a pool, basketball court, and many more that are factored in when estimating the value of a house. It must be noted that movable objects may be excluded from the valuation of a house. However, there is a difficulty when trying to exclude non-moveable assets on property like pools, gardens, nature, etc.
It will not surprise a lot of people to see a house or a property selling with a garden. Most people enjoy gardening:
It is obvious and general knowledge that gardens add value to UK houses. However, gardening today is moving from beautification to being an economic tool for gaining an advantage in the real estate industry.
What might not be clear to some people is how much having a nice garden adds value to your house. Yes, a nice and large garden adds value to your house. This has been investigated across the globe using several real estate agents and house owners.
According to Husqvarna Group, a garden can add about 16% to the value of a property. They investigated 5000 property owners who indicated that both real estate agents and clients think that having a garden increases the value of a house.
In 2019 in the UK, it was reported by Foxtons that buyers were willing to offer £50,000 extra for a house with a garden with around 70% of buyers saying that a garden stood at number one as the most sought feature in a house. These figures increased drastically in 2020 with the emergence of COVID-19.
A Homebuyer Wishlist report in 2021 indicated the demand for houses with a garden had drastically gone up by 92% in the UK. A current study by Moda Furnishing in 2022 reveals a dumbfounding outcome. They posit that a garden today can increase the value of a house by 250%.
In the UK last year, a garden could increase the value of a house by £45,000 or more in the cities from other sources. This figure has increased with time. A beautiful, well-maintained garden could increase the value of your house by 20% or more in the UK today to a tune of 250% as stated by Moda Furnishing. It is therefore important to find out what people want in your area and upgrade your garden to increase home value. You can take advantage of any land space you have to make something more interesting.
A nice garden adds value to a house. Such a garden with a proper layout makes a house look spacious. A large garden also adds value to a house as such space today is used for several programs.
Some benefits derived from having a garden are outlined below;
Now that it is established that gardens do add to the value of houses and demand for them keeps rising each day, it will be expedient to appreciate some investment areas in gardening you can try. These areas are discussed below;
The Husqvarna Group study revealed that a lawn in a garden adds the most value to a house. 53% of participants agreed with this. This indicates that having a lawn increases the value of your house. It must also be noted that the size of the lawn determines how much value it adds to the price of your house. This means that a large garden adds value to a house.
The size of the lawn is not the only thing that matters when assessing the value a lawn adds to a house. If your lawn is not well maintained, not only will it not add value to the house it can drastically reduce the value of your house by up to 15%.
One area of the garden today that is gaining extreme attention is creating a wide garden space on a property to host family and friends. Gardens no longer serve as a place where kids play. It has been extended to cover a wide space to host gatherings. Having such a garden in your house adds huge value to your house. However, it must be well kept if not it becomes a disadvantage.
Decorated hedges, flowers, and trees on the property provide a niche for privacy. A property with nicely trimmed hedges and orderly planted trees attracts potential buyers. Customers imagine how they will enjoy their private time and have a good relaxation under these trees and in these hedges. This adds value to the house if neatly dressed.
Do you have a garden? Are you thinking of ways to make your garden look great and add value to your house? It is not too late to start planning for a garden if you do not have one. Here, we take you through some key tips to make your garden look great and more valuable in the eyes of buyers.
This is a small space in the garden in the form of a hut where relaxation, exercise and some office work could be done. The beautiful area in the garden attracts buyers a lot.
It is very important to ensure that your garden is as private as it could be. This could be done by growing tall trees and hedges to block the sight of neighbours. As stated earlier, gardens are mostly used for private times. Ellie Hall, managing director of Martin & Co indicates that privacy is valued most when it comes to gardens. A more private garden attracts and adds more value to a house.
People who love to party will be extremely excited to have a garden with a good amount of space. A garden can also segment areas for different entertaining activities like tennis, snooker, cards etc. This adds massive value to the garden hence the structure.
A space in a garden could be used for an outdoor kitchen. An outdoor kitchen is seen a lot in the UK. This means that it is appreciated by many people. However, its installation comes with a huge cost. Outdoor kitchens are best for gardens meant for entertainment.
Buyers, mostly the ones with kids and pets, are extremely concerned about the safety of the garden. Nobody should be able to have access to the garden unless permitted by the owners. There must be locks where necessary. Storage is also important for safe keeping of expensive garden equipment.
In the UK, gardens do add value to houses. Starting a new garden in your house is possible and will need some planning, an understanding of what is patronised, and a gradual start. It is not prudent to invest huge sums of money in a garden at a goal. Start gradually and avoid over-speculation.
Contact us at RealAdvisor for more information on estimating a house value with land and garden. We can also guide you on ways to add value to your property through gardening.
The points explained below are how gardens add value to a house
Though some insurance companies offer specialised cover for gardens, most standard home insurance policies in the UK cover some level of your garden. This is because the outer space of your home includes properties that insurance covers. However, it is important to ask explicitly the level of coverage your garden has in home insurance.d