Sellers overvaluing their homes by 8% compared with agents

Homeowners in England and Wales overvalue their properties by an average of 8%, research suggests.

Property buying firm Quick Move Now compared homeowner valuations with formal independent estate agent valuations.

It is research the company has done regularly in recent years and the figure has dropped from 11% in 2019, suggesting homeowners and agents are becoming more in-sync when it comes to valuations.

Residents in Harrow, Romford and Telford provided the most accurate property valuations compared with what agents said, with homeowners over-valuing their properties by an average of 6%.

At the other end of the scale, those living in Llandrindod Wells gave the least accurate valuations, overvaluing by an average of 20%. 

All areas tended to overvalue properties rather than undervalue them.
 

Danny Luke, Quick Move Now’s managing director, said 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.”