How accurate is a Rightmove valuation?
Rightmove is not always accurate and can only be used as a guide in terms of valuing your property.
We use Rightmove and Net House Prices, as a guide only, as well as EIG Data – plus our own auction Sold Price History Tracking. The data on Rightmove is often months out-of-date – so you will need recent sold price history from EIG to start, then after this – we refer to NHP and Rightmove.
Here are some property valuation tips:
View all recent sold price history via EIG Auctions for your local area.
Make sure you compare like-for-like when you find your comparables.
Use ‘birds Eye View’ on Bing Maps to check the overall plot size.
Valuations are literally “moment sensitive” as the market rises and falls like the stock market.
When the market is ‘stuck’ or ‘broke’ as it currently is during writing this in September 2023, then it’s even more challenging to value an asset and the uncertainty really effects “difficult to sell “properties which once had a market during low interest rates.
Call several agents to get a second opinion.
Each property type has a “going rate” in terms of the yield-based return as per examples below for to value your property in the greater Merseyside and Liverpool region.
Shops, lease of 1 to 5 years, smaller corner shop type – 8 – 10%
Shops, lease of 5 to 15 years and a blue-chip tenant – 3 – 4%
Shops, longer lease with 15 to 20 years with blue-chip tenant – 4 – 5%
Single let small or terrace house in average/decent condition – 6 – 8%
Single let new build apartment – 3 – 4%
Based on gross rent including landlord paying utility and internet
HMO in very good condition, fully let – 10 – 12%.
HMO in average condition, fully let – 12 – 14%
HMO in poor condition, fully let in less desirable area -14 – 16%
As I write this in September 2023, I feel the market is extra-fast moving and moving up-and- down almost like the stock market. When we get to the top of the interest rate cycle, it should stabilise again. The consensus suggests have one more interest rate increase.
The Liverpool property market is correcting a bit now in a market way more sensitive to any interest rises when you are at this high rate. So – what I am saying it? It could be down one month – then just as fast – bounce back quickly a few months later when rates soften. The market very volatile now – moving up and down like the stock market. There is a shortage in supply ultimately. The big question for the UK market is – are these high interest rates here to stay? That’s the question I CAN’T really answer in any competent way.
Methodology of a UK Property Valuation:
Accuracy of your comparable and due diligence.
Understand the going rate based on a yield-based return.
Cash flows & covenant quality determines commercial property.
For an HMO – price per room should be considered.
An HMO is also valued on cash-flows and yield ‘going rate’.
Development potential can give an unusual valuation.
Every area has a “buyer’s and seller’s” postcode specific market.
Price per Sq.Ft/M primarily determines new build apartments
Step-by step guide to value a property in Liverpool:
Find Land Reg. data and www.eigpropertyauctions.co.uk/
Check via Bird’s Eye View on Bing Maps for site footprint dimensions.
Search address via all major engines like; Google, Bing, and Safari
Check if it’s on the listed buildings register.
Check your local planning portal floor plans.
Get to know your values with Rightmove daily alert management.