Estimating the value of your property

Have you ever wondered how much your property would be worth if you came to sell it? And, if you have, have you considered whether the suggested price is too much or too little and the price needs to be adjusted?

This is not necessarily an idle curiosity to while away some time when you're not so busy, because research by Zoopla, one of the UK's leading property websites, has shown that many homeowners underestimate how much they could be selling their property for - and, as a result, that assessment may influence their decision about whether now is the right time to sell or not.

The research by Zoopla compared the expectations of the homeowner regarding their feel for how much their home was worth in the housing market against a valuation carried out by an estate agent. The surprising results showed that an average of two-thirds of those involved tended to underestimate the worth of their property.

What is even more surprising in the survey results is that around a third of those involved underestimated their property at £100,000 or greater; the practical upshot of this is a surprise windfall should they decide to go ahead with selling it.

Interestingly, the survey further identified the fact that those who have owned the property for 30 years or more are more likely to know what their property could sell for than those who have owned their home for less time.

There is a strong north-south divide, too, with homeowners in the north far more likely to underestimate the price their home could reach on the market than those living in the southern regions - at 81% and 53% respectively.

One other interesting finding is that 16% of those who thought their house was worth a different amount from that estimated by the estate agent had achieved what they considered a fair price for their property.

On the other hand, there are also those homeowners who also overvalue their property, driven by the relative stability in house prices since the bounceback following the Covid pandemic earlier this decade. However, as Zoopla points out, longer-term price rises over the past ten years has led to almost two-thirds of property-owners undervaluing their homes.

There are also those who have unrealistic expectations, too, who are not happy with the valuation provided by the estate agent with 13% wanting to set the asking price at a higher value, with over two-thirds of those finding themselves financially stretched when buying their next home because of receiving the lower price than they had expected on their current property.

Source: Zoopla

Daniel Copley, Consumer Expert at Zoopla, commented: "For most people, homes are their most valuable asset and most homeowners will need the money in future, whether that is to fund their next home or to free up money for retirement.

"It's therefore surprising to see how few have a clear idea of their property's value and are missing out on potential gains when selling their homes.

"It's even more surprising when you consider how easy it is to get a quick and accurate valuation online on websites such as Zoopla.

"While for most it is good news and their home is worth more than anticipated, a significant number have not realised that the house price boom has slowed down and they are overvaluing their property.

"This can lead to issues agreeing on an asking price with estate agents.

"But as the data shows, those who go against estate agents' guidance rarely get what they hope for, highlighting that going with their guidance is the best way to get a reasonably quick offer and secure a sale."

If you are planning on selling your home and buying the next one, whatever the asking price is set at, you'll want to be sure that you are getting the best value and highest quality legal services to see you through to the completion.

To this end, look no further than Homeward Legal. Our conveyancers will start work on your plans as soon as you agree to the quotation and appoint them to represent you. Homeward Legal will also provide a quote that will not change - what you are quoted is what you pay for standard conveyancing process, which means you can effectively budget for your conveyancing needs.

There are some unforeseen items that might arise during the purchase and/or sale, which includes a specialist flood assessment report, but the solicitor discusses these and their cost as they come up.

In addition, to protect the homebuyer further, Homeward Legal operates a 'no completion, no fee' promise, which ensures that, should the purchase or sale not go through as planned to completion status, no payment is required.

Call to get your conveyancing quote started, or to discuss your concerns with your plans to move.

Or you can get a quick quote, using Homeward Legal's easy-to-use quote generator.