So what does value my house really mean ?

The understanding of the term ‘value’ is also important.  In simple terms the market value of a property is defined as the amount that a willing buyer and a willing seller is prepared to agree, in an arm’s length transaction where the parties are knowledgeable and act without compulsion.

In simple terms according to the Royal Institute of Chartered Surveyors, (RICS), the value of a property is the result of its transactional value.

Property Valuation is complex

Here at Landcycle, we have a different view. Imagine that a property is purchased for an unusually high price or an unusually low price – there are many circumstances where this applies.  So in these circumstances, it would be incorrect to accept that single transaction as a pure estimate of value.  In fact when considering the value of a property you would not only consider its asking price.  That would be entirely wrong.

Landcycle estimates property value using a unique algorithm that considers similar property sales within a strictly defined area and also considers all past transactions, and then using indices, Land Registry being one, applies values to all past sales in a specified area and creates a blended average value and a property specific value.  Sounds complicated but we take several data points to smooth out the unusual sales to come to an accurate sale value estimate.

We have found this to be a unique approach to valuations.  We are not suggesting we are 100% accurate, no valuation model is because one element of the RICS definition of value is true, a property is worth its transaction value.  But, that does not mean its transactional value is reflective of true value.  Yes it’s a complicated paradox, which is why predictions are notoriously difficult to achieve.

So log onto Landcycle, click on the Land Registry layer and click away on the various titles to find out more information.

 

Landcycle also has a different residual valuation method that we apply to ‘strategic land’, that’s land over 10 acres (by our definition).  Click on a property that’s bigger than 10 acres and you automatically get a residual land valuation.  There is another useful website called value my land that also provides a similar service.

If you want to see our valuation estimates, click on the £ sign on the top navigation bar to bring up a map of property valuations estimates.

We hope you enjoy our unique valuation estimate tools and it gives you an insight into what you should pay or sell a property for.  As always you should seek professional advice and not just rely on online tools, for reasons we have explained above.