How Much is My House Worth?

Your house is worth roughly what similar homes nearby have sold for. Look up recent sales of similar homes on Rightmove, Zoopla and HM Land Registry, and get estimates from at least three estate agents, whose valuations tend to be optimistic. Then average those figures.

Article updated: July 2026

What is Market Value?

Market value is what your house is worth measured against the prices of similar properties on the open market. It is easy to mix up with the asking price and the selling price, but in property terminology they mean different things.

Market value is not necessarily what a house sells for. It may not even be the price it is listed at, which is known as the 'asking price'. Some sellers prefer to list at a high price, hoping to get lucky. Others may list at a low price because they are willing to sell below market value for a quick sale.

The market value, however, gets you close to its potential value.

What Determines the Value of your House?

Its size: That buyers will pay more for a larger house than a smaller one is common sense. But square footage alone is not a reliable guide to the value of your house. In the UK, property owners often define the value of their home by the number of bedrooms. For example, a three-bedroomed house may be worth more than a two bedroomed house the same size.

Its location: Every City, Town, postcode and street will have different values for the same types of properties. Even close by locations like properties for sale in Bury or in Rochdale, will have different prices, and it ultimately depends on how active an area is and how many homeowners (and tenants) push to live there.

Local amenities: Buyers are generally prepared to pay more for houses that have good local amenities, including shops, public transport links and of course schools.

Its condition: The value of your house may be higher if it is in good condition. It will likely be lower if it is in poor condition, both due to the repair costs involved and also because there are fewer buyers willing or who can afford to take on a project. The kerb appeal or tidiness of your house will not necessarily add to the value of your house, although it may help to attract more viewings and so more offers. This is why property investment strategies like buy refurbish and refinance can work, as investors can purchase run-down properties at a lower than market price and add value with refurbishments.

Tenanted or vacant: Tenancy status also affects value. A tenanted property will typically be valued differently than a vacant home, so consider this carefully before accepting a let agreed application if you're planning to sell soon

The asking price of similar houses: Or what are known as comparable properties. You can find asking prices of similar houses in the area by searching on Rightmove or Zoopla. But remember that asking prices are not the same as market value or actual selling prices.

The actual selling price of similar houses:Sold property prices is an even better comparison than on the market properties. You can also get this data plus information on average selling prices plus annual rises/falls over the last year for every council area (England & Wales) from HM Land Registry.

But there is a catch here. Buyers may not pay now what they were willing to pay a year ago, or even a month ago. That is especially true if you are in the middle of a property cycle downturn in the 18-year cycle.

The price of similar houses that have not sold can be a factor too. If those similar houses remain unsold it could be because they are overpriced and this could put buyers off paying 'market value' for other properties in the area.

Whether a hot or cold property market: A hot market, or seller's market, is one where there is lots of demand to buy but not enough properties available for sale by comparison, so it is easy for sellers to sell. A cold market, or buyer's market, is the reverse. There may be many properties for sale but few (or no) willing and able buyers, making it hard to sell.

How Not to Value your House

Here are a number of methods which are NOT a reliable way to value your house:

• What you think your house is worth.
• What you bought your house for, plus an allowance for price rises since.
• How much you have spent on your house, such as any extensions and improvements that have been done.
• The rebuilding cost of your house, eg. an insurance valuation.
• What you need to sell your house for, eg. to buy another one or pay off your mortgage.
• What an estate agent decides your house is worth... more about this coming up.
• What online house price calculators say your house is worth... more about this coming up.

These may all sound a 'fair' assessment of the potential value of your home but don't actually impact a buyer on its value. Take for example a house purchased for £200k and £50k spent on a refurbishment. This property could now be worth much more than £250k. But if the market has shifted down by 20% in the time since you purchased, it could be worth way less.

The Truth about Estate Agents' Valuations

An estate agent's suggested asking price is not always what your house is worth, even though asking an agent is one way to find out.

Good estate agents are experts in their local property markets. They will have a good knowledge of what other houses are for sale locally, what is selling at what price - and what is not selling. A good estate agent will know what is the true value of your house.

Estate agents, however, are in a competitive situation with other estate agents to gain instructions, and this can put them in a challenging position. If they suggest a lower asking price they are likely to lose instructions to estate agents who suggest a high asking price. A high asking price may not be to your advantage, however, as an overvalued house may fail to sell. In some cases, a lower asking price may help to attract more interest from buyers, create more competition and so achieve the highest actual selling price.

When selling your house it is a good idea to ask several estate agents for a valuation and to suggest an asking price and then compare them all.

Ask each estate agent how they arrived at their valuation and suggested asking price. Tell the estate agents:

That you are interested in establishing the highest eventual selling price, not necessarily the highest asking price.

The Problem with Online House Price Calculators

Online house price calculators cannot take into account every factor that affects value, including the sometimes irrational way real buyers act. So they can sometimes produce valuations which are much too high or much too low. They are popular because all you need to do is tap in your address and postcode and they offer an instant, free valuation.

When valuing properties, online house price calculators, sometimes known as automated valuation tools, use an algorithm to give you a potential valuation. The algorithm is usually kept secret, but the calculators use data including past sale prices, current asking prices, sales trends and average house price rises/falls in the local area.

Many estate agents have a free online valuation tool on their website, so it is worth looking at your local agents, however it won't take in to account all of the variables for your home.

Many you have a larger garden, a new driveway that could add value, three larger bedrooms when your nearest competitor properties only have a small third box bedroom.

All of these can add value and can easily be missed with an online property valuation calculator.

So, How Much is my House Really Worth?

The nearest you will get to a real figure comes from these five steps:

Step One. Disregard what you think your house is worth!

Step Two. Consider online house price calculators and automated valuation tools as a guide, and a guide only. Use this as a starting point.

Step Three. Ask several estate agents for their estimate of the correct market value of your house and for an appropriate asking price.

It is a good idea to ask at least three estate agents, including traditional high street ones, and compare them. Be aware that because of the way the competitive estate agency market works there is a tendency for estate agents' valuations to be optimistic.

Step Four. Do your own research to find comparables. Look for similar properties that are for sale, which haven't sold, and which have sold recently. Use Rightmove, Zoopla and HM Land Registry as a guide.

Consider whether the market in your area is hot, cold or somewhere in between. Be realistic about the current local property market and not swayed by the general national media.

Step Five. Combine the values and consider what the mean or median average is. Be thoughtful, and if you are selling a tenanted property portfolio, consider that this will require a specialist buyer and can affect your prices more than selling one traditional Edwardian house.

In summary, it's very true to say that valuing your house is never an exact science. There's really no such thing as an exact value for what your house is really worth, but many different valuations.

Buyers, sellers, estate agents, home surveyors and others will all take a slightly different view, with the true value of your house being somewhere in the middle. Your house is worth what a willing and able buyer is willing and able to pay for it AND what you are willing to sell it for.

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