What is your home worth?

It sounds like a simple question.

You bought your home for £320,000. The house three doors down recently sold for £425,000. An estate agent says yours could achieve £450,000. An online valuation tool says £432,000.

So what is your home actually worth?

The answer is: the price a genuine buyer is prepared to pay for it today.

Everything before that is an estimate.

That does not mean valuations are guesswork. There is a huge amount of useful property data available, including actual completed sales recorded by HM Land Registry. But no two homes, buyers or transactions are exactly the same.

The best valuation combines real sales data, the characteristics of your property and what is happening in your local market right now.

Here's how to work out what your home could really be worth.

Start with what similar homes have actually sold for

This is one of the most useful pieces of information available to a homeowner.

HM Land Registry publishes Price Paid Data covering property sales in England and Wales that are sold for value and submitted for registration.

That means you can look at actual completed transactions rather than simply advertised asking prices.

If you own a three-bedroom semi-detached home and three similar properties nearby have recently sold for:

• £405,000
• £412,000
• £418,000

that gives you a much stronger starting point than discovering that somebody nearby has listed theirs for £475,000.

Why?

Because an asking price tells you what a seller hopes to receive.

A sold price tells you what a buyer actually agreed to pay.

Asking price is not the same as value

This distinction is important.

Imagine two virtually identical houses.

House A

Listed for £450,000.

Eventually sells for £420,000.

House B

Listed for £425,000.

Receives several offers and sells for £430,000.

Which was worth more?

Based on the transactions, House B.

Yet anyone looking only at the original asking prices could easily have reached the opposite conclusion.

This is why comparing your home with properties currently listed for sale can be useful, but it should never be your only valuation method.

Recent sales matter more than old sales

Suppose your neighbour sold an identical house for £390,000.

That sounds extremely useful.

But if the sale happened seven years ago, the figure tells you relatively little about what your home is worth today.

Property markets move.

Prices can rise, fall or remain relatively flat depending on:

• mortgage rates
• buyer demand
• employment
• availability of homes
• local development
• school popularity
• economic confidence
• the type of property

The UK House Price Index uses completed residential sales and other property information to measure changes in house prices across the country. However, because it relies on completed transactions being registered, official data can lag the current market.

So older sale prices can be useful, but they need to be adjusted for what has happened since.

The closer the comparable property, the better

When valuing your home, “nearby” does not always mean “comparable”.

Property markets can change significantly within a short distance.

One road may:

• fall into a more desirable school catchment
• have larger gardens
• experience less traffic
• overlook countryside
• contain larger plots
• have easier parking
• be closer to a station

Even different sides of the same street can sometimes command different prices.

The strongest comparable sale is usually one that is:

close to your property + similar in type + similar in size + recently sold

Finding several such transactions is better still.

Property type makes a big difference

Averages can be misleading.

Imagine the average property price in your postcode is £480,000.

That sounds useful until you discover the postcode contains:

• flats
• terraced houses
• semi-detached houses
• detached houses
• bungalows
• large period properties

Your two-bedroom flat is obviously not worth £480,000 simply because that is the local average.

Compare like with like.

A three-bedroom semi-detached property should ideally be compared with other three-bedroom semi-detached properties rather than the overall postcode.

Official UK House Price Index data itself distinguishes between property characteristics when analysing prices. Its methodology uses property attributes such as property type, size and location rather than treating every home as identical.

Size matters, but price per square foot isn't everything

Floor area can be particularly useful when comparing homes.

If two houses appear almost identical from outside but one is 1,050 sq ft and the other is 1,400 sq ft, they are unlikely to have exactly the same value.

You can therefore calculate:

Sale price ÷ floor area = approximate price per square foot

For example:

£425,000 ÷ 1,250 sq ft = £340 per sq ft

If similar nearby homes are consistently selling at around £330 to £350 per sq ft, you have another useful benchmark.

But don't simply multiply your floor area by the neighbourhood average.

A 2,500 sq ft house does not necessarily command exactly twice the value of a 1,250 sq ft house.

Land, layout, condition, location and buyer demand still matter.

Number of bedrooms matters, until it doesn't

Adding a bedroom can increase a property's value.

But buyers do not simply count bedroom doors.

Consider these two houses:

House A

Four bedrooms, 1,250 sq ft.

House B

Three bedrooms, 1,450 sq ft.

House B could easily be worth more.

Why?

Because House A may simply have divided an existing bedroom into two small rooms.

Buyers care about the overall usefulness of the property.

That means considering:

• bedroom sizes
• living space
• bathrooms
• storage
• kitchen size
• flow between rooms
• overall floor area

More rooms do not automatically mean more value.

Extensions can add value, but rarely pound-for-pound

Suppose you spent £80,000 building an extension.

Has your home increased in value by £80,000?

Not necessarily.

It might have increased by:

• £40,000
• £80,000
• £120,000

or very little at all.

It depends on what the extension actually added.

A well-designed kitchen-family room overlooking the garden may significantly improve a house.

An awkward extension that creates a dark central room might be less attractive.

Value is influenced by the usefulness of the additional space, not simply what it cost to construct.

Condition matters

Two neighbouring homes can be physically almost identical but achieve very different prices.

One might have:

• a recently fitted kitchen
• modern bathrooms
• good decoration
• updated heating
• new windows
• landscaped garden

The other might need:

• rewiring
• a new boiler
• replacement windows
• a kitchen
• bathrooms
• roof repairs
• complete decoration

Buyers will price those differences into their offers.

However, be careful about assuming:

“I spent £40,000 renovating, so the house must now be worth £40,000 more.”

Renovation cost and added property value are not the same thing.

Plot size can be extremely important

Automated valuation tools can sometimes struggle with unusual plots.

Two houses may have the same postcode, floor area and number of bedrooms while one has:

• a small courtyard garden

and the other has:

• a quarter-acre plot
• large driveway
• detached garage
• development potential

Those homes are not truly comparable.

This is why data can provide an excellent valuation starting point but cannot always capture everything that makes an individual property desirable.

Parking can affect your home's value

Parking matters more in some locations than others.

In a rural village where every house has a driveway, an additional parking space might make little difference.

On a crowded street near a railway station, off-street parking could be a significant advantage.

The same applies to:

• garages
• EV charging
• allocated parking
• residents' permits
• unrestricted street parking

Value is always relative to what buyers expect in that particular location.

School catchments can matter

Family buyers may place significant value on being within the catchment area of a popular school.

That can sometimes create noticeable price differences between very similar homes located surprisingly close together.

But catchment boundaries and admission arrangements can change.

So don't simply assume that a school mentioned in an old estate-agent listing still applies to your home today.

Transport links matter too

Access to:

• railway stations
• Underground stations
• major roads
• employment centres
• airports
• bus routes

can affect demand.

But proximity is not always positive.

Being a ten-minute walk from a station can be desirable.

Having the railway line running directly behind your garden may be less so.

Again, local context matters.

Your garden can add value

Buyers do not necessarily value gardens simply by square metre.

They may care about:

• privacy
• direction
• usability
• level ground
• landscaping
• access
• views
• mature trees
• entertaining space

A smaller sunny, private garden can sometimes be more appealing than a larger but heavily overlooked plot.

What about a south-facing garden?

Estate agents love mentioning them.

And many buyers like them.

But a south-facing garden does not come with a fixed monetary premium.

Its importance depends on the buyer and the rest of the property.

Think of it as one characteristic contributing to desirability rather than something you can simply add £10,000 for.

Energy efficiency is becoming another comparison point

Buyers can usually see a property's Energy Performance Certificate when considering a home.

That means they may compare:

House A: EPC B

with:

House B: EPC E

For some buyers this will have relatively little influence.

For others, particularly those conscious of heating costs or future improvements, it can matter.

Solar panels, insulation, modern heating and other energy improvements may therefore contribute to how attractive the home appears.

But, again, there is no universal formula such as:

new boiler = £5,000 extra value

The market ultimately determines how much buyers care.

What about views?

Views are a perfect example of why property valuation cannot be entirely automated.

How much is it worth to overlook:

• the sea
• countryside
• a park
• a river
• a historic landmark

There is no universal answer.

But buyers may clearly pay more for it.

Equally, overlooking a busy dual carriageway, industrial estate or neighbouring apartment block may reduce demand.

Some characteristics require human judgement.

What reduces the value of a property?

Anything that materially reduces buyer demand can affect value.

Examples might include:

• structural problems
• subsidence
• significant damp
• short leases
• unusually high service charges
• difficult access
• restrictive covenants
• Japanese knotweed
• flood risk
• major road noise
• poorly executed extensions
• unusual layouts
• limited parking
• large amounts of required maintenance

That does not necessarily mean these properties are difficult to sell.

Usually it means price becomes part of the solution.

Almost every property has a buyer at the right price.

How accurate are online house valuations?

Online valuations can be extremely useful.

They can analyse data far faster than a homeowner could manually, including:

• previous sale prices
• nearby transactions
• property type
• location
• market movements
• known property characteristics

That gives you an excellent starting point.

But an automated model might not know that:

• you spent £150,000 renovating the property
• the house next door has not been updated since 1987
• you have an exceptional view
• your extension added 500 sq ft
• your garden is twice the normal size
• your property requires complete modernisation

This is why the most useful online valuation should ideally be presented as a range, rather than pretending a computer can know that your house is worth exactly £463,742.

Why do estate agents give different valuations?

You invite three agents to value your home.

Agent A says:

£425,000

Agent B says:

£450,000

Agent C says:

£475,000

Which one is right?

Not necessarily the highest one.

Estate-agent valuations involve judgement, and agents may have different views of local demand.

There can also be a commercial incentive to give an optimistic valuation in the hope of winning your instruction.

A useful question to ask is:

Which recent completed sales support that valuation?

A good agent should be able to explain their reasoning.

Be careful of the highest valuation

It is understandably tempting.

If two agents say £450,000 and another says £495,000, why wouldn't you choose the one who thinks your house is worth more?

Because the valuation itself does not put an extra £45,000 in your bank account.

Buyers determine the eventual price.

Starting too high can sometimes mean:

1. fewer buyers arrange viewings
2. the strongest early buyers ignore the property
3. weeks pass
4. the price is reduced
5. buyers notice the reduction
6. the property starts looking stale
7. lower offers arrive

The objective is not to obtain the highest valuation.

It is to achieve the best sale price.

Those are different things.

What is market value?

At its simplest, market value is what a willing buyer and willing seller can agree in the current market.

And “current” is important.

Your property may have been worth £500,000 two years ago.

It could be worth £540,000 today.

Or £475,000.

Your mortgage balance does not determine its value.

What you paid does not determine its value.

What you need for your next house does not determine its value.

And unfortunately, what you would like it to be worth does not determine its value either.

The market does.

Does a mortgage valuation tell me what my home is worth?

Not really.

A mortgage lender's valuation is primarily designed to establish whether the property provides acceptable security for the loan.

It is not the same thing as a full market appraisal conducted for the homeowner.

Similarly, a formal RICS valuation may be required for particular legal, financial or tax purposes and serves a different purpose from an online estimate or estate-agent appraisal.

It helps to understand which kind of valuation you actually need.

How can I estimate my home's value myself?

A sensible starting process is:

Step 1: Find recent sold prices

Look for genuinely comparable completed sales close to your property.

Step 2: Prioritise recent transactions

The more recent the sale, the more likely it reflects today's market.

Step 3: Compare similar property types

Detached with detached.

Flat with flat.

Terraced with terraced.

Step 4: Compare size

Look at floor area as well as bedroom count.

Step 5: Account for condition

Was the comparable property renovated, average or in need of work?

Step 6: Consider the plot

Compare gardens, parking and any additional land.

Step 7: Adjust for important differences

Consider extensions, views, location within the street, garages and other meaningful characteristics.

Step 8: Look at current competition

What similar homes are buyers choosing between right now?

Step 9: Use a valuation range

Don't pretend the evidence is more precise than it really is.

Your conclusion might reasonably be:

Likely value: £435,000 to £455,000

rather than:

Value: £447,263

Why hasn't the house next door's sale appeared yet?

Completed-sale data is invaluable, but it isn't instant.

There can be a delay between a property completing and the transaction appearing in HM Land Registry data because the sale first needs to go through the registration process. Official guidance specifically warns that the delay can vary.

That means the most recent comparable transaction you know about locally may not yet appear in the data.

This is one reason combining official records with current local market information can produce a better estimate.

Can an estate agent value my home for free?

Usually, yes.

Estate agents commonly offer market appraisals without an upfront charge in the hope that you will subsequently instruct them to sell the property.

There is nothing wrong with that.

But remember what the valuation represents.

It is an agent's professional opinion of an appropriate marketing and likely sale price, not a guaranteed offer to buy your property for that amount.

Using data first can make that conversation much more useful.

Instead of simply asking:

“What do you think it's worth?”

you can ask:

“I can see three comparable properties sold for £430,000 to £455,000. What makes you think mine should be marketed at £475,000?”

That's a much better conversation.

How much could my house sell for?

Ultimately, there are really three numbers to think about.

Estimated value

What the available property data suggests your home is worth.

Asking price

The price at which you choose to market the property.

Sale price

What a buyer actually agrees to pay.

They do not have to be the same.

For example:

Estimated value: £440,000 to £460,000
Asking price: £465,000
Accepted offer: £455,000

That could be a perfectly successful sale.

The goal isn't necessarily to achieve the number printed on the Rightmove listing.

It's to achieve the strongest price the market will realistically support.

So, what is your home worth?

You don't need to rely on guesswork.

There is now an enormous amount of information that can help answer the question.

HM Land Registry Price Paid Data records completed sales in England and Wales and is updated as new transactions are registered.

Combine that with:

• recent nearby sales
• current market conditions
• property type
• floor area
• bedrooms
• condition
• extensions
• plot
• parking
• tenure
• energy performance
• local demand
• what is currently for sale

and you can build a much more credible picture of your home's value.

Find out what your home could really be worth

Tepilo starts with the data.

We look at your property, nearby completed sales and the characteristics that make your home different to produce a useful estimate of what it could be worth today.

Then, when you're ready to sell, you can compare that estimate with valuations from local estate agents and make a better-informed decision about who to instruct and what price to ask.

Because knowing what your home is worth shouldn't start with someone trying to win your business.

Find out what your home could be worth with Tepilo.