LETTINGS – WHAT IS YOUR HOME WORTH

When letting your home, its value is determined by one thing and one thing only “What a qualified (and able) tenant is willing to pay for it”.

“Your home is never worth more than what a tenant is willing (and financially able) to pay”

So how do tenants decide what they’re willing to pay?

What tenants will be willing to pay for your home; in today’s market (i.e. what they think it’s worth) will be determined by comparing your home to the others to let right now.

In other words: Today’s competition determines today’s value of your home

No tenant can secure a property that has already been Let – They can only secure a home that is currently To Let and Available.

Instead, it’s value is determined by:

Tenants comparing it to the other homes available in the market at this particularly moment in time.

  • Tenants visualise the value of one property versus the other(s) available to Let, by comparing the features each offer for the price they are asking.
  • Tenants determine the intrinsic values to themselves by inspecting the properties and making their own judgments
  • In that regard, the value of your property (when it comes time to let) simply reflects what tenants think it’s worth

Letting Agents are NOT all the same

True, letting agents all do basically the same ‘stuff’ i.e. marketing, negotiating, building relationships with buyers.

It’s just that some letting agents do this substantially better than others.

Experience tells us there is roughly a 10% spread (either side of the theoretical market value of your home) where your price can end up over the course of average letting term of 18-24 months this could end up being a substantial sum of money .

How far above (or below) the theoretical market value of your home your price ends up, will be directly determined by:

  • Your choice of letting agent.
  • The skill of that letting agent.
  • The suitability of that letting agent to let a property like yours.

“ A house is never worth more than what a tenant is willing to pay”……But, what a tenant is willing to pay isn’t fixed.

The right letting agent will get them to pay you more! So a letting agent whom charges you less, may result in you getting you less.

Heminstone Estates will demonstrate and give you a detailed report not of the market but of properties let, to let and how much we can achieve. Our skill determination and experience backed by professional marketing is geared to achieving you the right tenant but also the best possible price, so what have you got to lose, call us now.

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