Can you rely on the figure from an online valuation of your property?
You may be aware that it is possible to have an instant valuation for your home. All done from the comfort of your sofa, and you can get the results in just 60 seconds! So quick and convenient - there must be a catch, right?
You may be aware that it is possible to have an instant valuation for your home. All done from the comfort of your sofa, and you can get the results in just 60 seconds! So quick and convenient - there must be a catch, right?
Well, it isn't a catch as such, but there are limitations with an instant property valuation. Before pinning all your house moving plans on the quoted figure, you must understand how it works and where its limits lie.
An instant valuation for a property is calculated using an algorithm that analyses property sales and market data in each postcode to estimate the value of a property. This is how you can have the result quickly, at any time of the day or night.
What is the point of having a real-life, in-person valuation appointment for your home if you can find out so easily how much your home is worth? It is so simple and convenient, without any human input. Does this process make estate agents obsolete?
Well, instant valuations are really your first step on the journey to selling your home. It is not intended for serious sellers but more for the curious homeowner considering one day they might sell and is interested to see how much their property could be worth.
Because it uses an algorithm, the information can only be as accurate as the data available. It is based on sold properties in your postcode area, the price you paid for the property when you bought it, and the economic changes in the market as a whole. This doesn't consider any changes you've made whilst living there. It doesn't consider the lovely view from your kitchen window and how close you are to the outstanding primary school parents fight to get their kids into.
There is no way to inform the algorithm of the nuances of each property. You can not notify the system of the changes you've made since you bought it or the differences between your property and the one down the road. Perhaps you've built a fabulous extension or restored the property from dilapidated to beautiful. Or maybe that, although your neighbour sold last year, their property didn't have a garage, or perhaps they had a tiny garden, so the property doesn't compare with yours. These differences are vital when calculating the value of a property, and they are simply not available to the automated system.
An agent will assess the value, yes, but also the saleability of your home. They will carefully consider the market and the buyers registered on their database who might be interested in your property. They will think about the marketing materials they will produce and how to photograph your property for the best views. They will think about the wording and mention all of the features in the text, such as your newly fitted windows or garden room. All of these elements can positively impact the value of a property and the ultimate sale price, but they are not things that can be known by an automated service.
Put simply, if you are seriously considering selling your home, there is no substitute for a professional opinion. But it might be interesting to have a go at an instant valuation if you are at the very early stages, just thinking about selling and are not quite ready to speak to an actual human about it just yet.
With no commitment needed from you, it is a great way to get an idea of the value without making any firmer plans.
If you've had an instant valuation of your home and were left disappointed, don't despair. The algorithm simply doesn't have enough data about your property to give you an accurate figure. It would be a good idea to have an in-person appointment.
If you would like a more in-depth look into what your home could be worth, have a real-life, in-person valuation appointment with our expert team. Get in touch today to book yours.