How good are homeowners at valuing their property?

We share eight new infographics per month with our Dataloft Inform subscribers, exploring all sorts of topics, themes and analysis of the property market.

This one particularly grabbed my attention this month.

Over or under?

It’s the perennial question that we all ask ourselves – how much is our property worth now? This prompts a quick search on a portal or a chat with a neighbour to see what that couple round the corner got for their house when they sold it. But how accurate are our assumptions?

In actual fact, not very accurate at all. According to new research by Zoopla, almost half (45%) of UK homeowners undervalue their home. And, on average, homes are undervalued by just over £46,000. Indeed, more of us edge towards being cautious about the value of our home rather than being over-optimistic. Collectively, Zoopla’s research suggests that the average UK home is worth over £9000 more than its owner realises, with the figure in London more than double the national average (£22,846).

There are some optimists out there though, with 1 in 4 homeowners believing that their property is worth more. And for some of life’s greatest positive thinkers, 1 in 10 of these predicted that their property was worth over £100,000 more than it was worth.

The importance of working with a knowledgeable agent

Whether consumers are under or overvaluing properties, it’s clear that estate agents can play a vital role in getting pricing right for their customers. Indeed, because of the difficulties in making sense of the market, it was no surprise when we analysed the results of the Property Academy’s Home Moving Trends Survey that 78% of sellers stated ‘Good market knowledge’ as a top priority when choosing an agent. And 76% of landlords wanted to work with an agent that were experts on the market.

Become the go-to agent for local expertise

We work with many agents who take an informed and analytical approach to valuing properties, using evidence and high quality data and comparisons to reach the right price. But to get to the point of being considered in the first place, you need to be regarded as an expert before people even think about moving. To do this, share your knowledge as an integral part of your brand and marketing. Whether it’s through social media posts sharing local market insights, emailing out market reports to your database or door-dropping flyers or letters that demonstrate your expertise, an ongoing programme of activity will ensure that you become the go-to agents that people look to for advice.

Sources: Dataloft, Zoopla, Property Academy

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