Research conducted by property buying firm, Quick Move, has revealed that homeowners in England and Wales are overvaluing their own properties by an average of 8%.
This study has been done regularly over recent year and has compared homeowner valuations with formal independent estate agent valuations.
The figure itself has dropped from 11% in 2019, which is actually suggesting that homeowners and agents are beginning to think the same when it comes to valuations.
The most accurate property valuations carried by homeowners compared to what agents have said, was seen in Harrow, Romford and Telford. In these areas, sellers were overvaluing their properties by an average of 6%.
On the other hand, the least accurate valuations were seen in Llandrindod Wells (Wales) where properties were overvalued by an average of 20%.
Danny Luke, Quick Move Now’s managing director, said that property websites such as Rightmove and Zoopla are making it much easier for homeowners to gather information about the local property market and what their homes might be worth but warned that over-pricing can result in it sitting on the market for twice as long.
He said: “It can be very difficult to view your own home objectively, so it’s always best to get a local estate agent to visit your property for an accurate and up to date valuation.
“Ultimately, any property is only worth what someone is willing to pay for it and a local estate agent is likely to have knowledge about the local market that an online valuation tool simply can’t compete with.
“That is especially true in the current market where things are changing very quickly from one week to the next. Now that the ‘cost of living’ crisis is really starting to hit, we are definitely beginning to see a cooling of the market. The first two weeks of marketing your property are the most important in terms of attracting a buyer, so it’s vital that you price your property correctly from the start.”
Furthermore, Danny went on to explain that headlines stating that there has been significant property price growth can result in sellers getting caught up in the hype of it. Overpricing your home when putting it on the open market, can affect how long your property takes to sell.
So, between media headlines and property websites, it’s easy to overvalue your home. Therefore, sometimes, it’s best to let the experts work their magic to avoid disappointment.