As a freelancer or a contractor, there is a huge value in knowing your worth. You provide your specialist services to another company, and you should be charging the right amount for these services.
Knowing your value can bring huge rewards and place you in a great position. If you do not realise how good you are at what you do however, you might be in a position whereby you are selling yourself short.
Knowing your own value and knowing the value of the things you own are not a million miles apart. Surprising new figures indicate that many homeowners are not fully aware of the value of their properties.
As contractors and freelancers, we have to know our value in our professional lives. So the idea of doing it in our personal life in terms of home ownership really sticks in the craw.
How many homeowners are undervaluing their property?
Property website Zoopla has found that 45% of homeowners undervalue their home’s value, with an average undestimation of £46,000.
Zoopla estimates that across the UK housing market, the true value of properties may be being underestimated by as much as £237 billion.
25% of the 2,000 homeowners surveyed by Zoopla actually overestimated the value of their property. This was on average by an amount of £44,000.
The problem of underestimating property value was most present in London and the south-east according to Zoopla, where it seems many people do not fully grasp how valuable property in this part of the world can be.
All in all, it’s fair to assume that a significant chunk of the population doesn’t have a solid grasp on exactly how valuable their home is at this time.
Underestimating your property’s value – Pros and Cons
If you think about your own property and have a vague figure in your head of its value, then that could be something you use to decide on your next move or whether or not you can afford to do so.
But without a proper valuation, you leave yourself susceptible to making an error that could deny you opportunities were you fully in the know.
As an example, if you are keen to upsize your home but think your home is only worth £200,000, when in fact it’s worth £250,000, that could make a huge difference to your plans. That equity is of huge value and could see you really upscale in a big way.
If you are in a position whereby moving to a bigger home sounds appealing, getting your current home valued is one of the best steps you can take. It gives you a clear idea of what you’re dealing with, and what kind of a next move you can make.
Thinking that your property will be of the same value as when you bought it could see you miss out on gaining a real understanding, and limit your financial planning for your next move if you are looking to remortgage or take advantage of a home mover mortgage.
So while underestimating your home could be problematic if you don’t do something about it, if you do grab the bull by the horns and get a valuation sorted, there are a whole new world of benefits that could open up for you.
Should I get a fresh valuation on my home?
We don’t feel like it’s ever a bad idea, particularly given the tumultuous time we have had of late. If you are sitting on a really valuable property but don’t know it, then a valuation can quickly give you the information you need.
There are plenty of surveying firms out there who can work quickly and efficiently to provide you with a good idea of the value of your home.
Though these services come with a cost, if you are indeed undervaluing the value of your home, then this is a small price for what could potentially be a great windfall.