Zoopla’s free online valuation tool is most people’s first port of call when they are thinking of selling their home. However, Zoopla has been criticised for being misleading about how accurate their valuation tool is.
Below we discuss how the tool works, and how accurate it really is.
Zoopla starts with the price your property was last sold for.
It then multiplies this by the average increase or decrease in value of other similar properties in your area. From this it then generates an estimate of what it thinks your house is worth.
Zoopla’s estimates can’t take into account any major changes that you’ve made to the property since you bought it - such as an extension or conversion. It’s also not able to consider any of the unique features of your property.
The reliability of Zoopla’s valuation tool varies massively. The estimate is much more likely to be accurate if other properties in your area are like your home in terms of size, age and condition. If you’re trying to value a more unusual property, you’ll find the estimated value is less accurate. Areas where there are less sold properties will also see less reliable estimates as Zoopla’s has less recorded house sales to use to calculate from.
We recommend that you avoid using Zoopla’s valuation tool to determine what your home is worth. It provides very generalised estimates and there are several conditions that the tool is completely unable to consider. Zoopla themselves note that ‘It’s important to remember that the value given is just an estimate’.
Ultimately the true value of your home is what a buyer would be willing to pay for it at that moment. This is generally worked out by comparing your home with the other properties on the market: what they are charging and what additional features you offer. An online instant valuation tool would not be able to give you that comparable data.
If you're not keen on the idea of having an estate agent around to value your home, click here to check out our blog on how to value your own home. This will give you the tools you need to help you value your own home. This is good practice to do before you get an agent around as you can compare it to their figure to ensure they are not undervaluing or overvaluing your home.
Ultimately, the best way to find out how much your house is worth is to talk to a local estate agent with a proven track record of selling properties in your area.
They will be able to use their knowledge of the local market to position your property against those currently for sale, and those recently sold. The best local agents will know about the unique features of other properties on sale nearby, and what your home offers that differentiates it from these properties. This will help them to accurately estimate the value of your property.
If you have had thoughts about selling your home, or you want advice on getting your home ready for market, please feel free to get in touch with us on 0121 430 4448 or email us on email@example.com
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