How accurate are Zoopla estimates?
Here's why Zoopla valuations may not be the accurate tool you thought...
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How accurate & realistic is a Zoopla price estimate?
The Truth About Zoopla Valuations and House Price Estimates
What is a Zoopla house value?
A Zoopla house value, or Zoopla price estimate, is a value that Zoopla believes your house is currently worth if you were to list it for sale on the open market. Zoopla gives you a figure with two figures on either side, a high and a low figure, so you can see a range of what your house could be worth.
Getting a Zoopla house value can be a good idea if you’re just wanting to have a nosey at a rough estimation of what your house is currently worth, to see whether it’s worth selling. It can also be a good idea to check your Zoopla house value before you invite estate agents over to give their valuation of your property, so you can get a ‘ballpark figure’ as to what value you can expect the estate agents to give.
It's key to note that this is called an estimate for a reason – it’s Zoopla’s best guess as to the value of your house and is based on data such as recent house sold prices in the area, the last sold price for your house and the current market conditions.
How does a Zoopla house price estimate work?
Just like any house valuation, a Zoopla price estimate is a rough figure as to what your property could be worth if you were to sell it in the current market. Due to the nature of it being an estimate, Zoopla provides you with a main middle figure and then two figures on either side, with one being the lowest possible figure and one being the highest. This then allows you to see the whole range as to what your house could be worth.
A Zoopla price estimate doesn’t involve anyone coming to view your property, as it’s all done remotely and is based on current data. This is data that is publicly available should you choose to search for it.
The data that will be used for your Zoopla house value is sold house price data from HM Land Registry and Registers of Scotland, what your Energy Performance Certificate (EPC) rating is, official survey records from accredited surveyors, address data from Royal Mail and Ordnance Survey and information about nearby properties that are live for sale or rent.
This data is then combined to create a range for what your property could be worth. Zoopla will also display for you the similar properties that are currently for sale and the properties that have been sold nearby to help you understand where their figure has come from.
Alongside the Zoopla price estimate, they will also state whether they have ‘high confidence’ or ‘low confidence’ in the figure they’ve given you. High confidence means there are a lot of similar homes to yours in the area, the data is up to date and the market conditions are steady. Low confidence will mean there aren’t many comparable properties nearby, the data is less recent, and the market conditions are highly changeable.
It's important to pay attention to the confidence level Zoopla has given you, as it can help you understand how accurate the estimate is.
How does Zoopla calculate sold house prices?
Zoopla Sold House Prices is a feature provided by Zoopla, that gives an estimated price for a property that has recently been sold.
The Zoopla house prices are intended to give an idea of the current market value of a property and are not an official valuation.
The actual sold price of a property can vary significantly from the estimated price and may depend on a number of factors we cover below:
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Zoopla obtains its sold house price information from a variety of sources, including the UK Land Registry, which collects data on all property sales in England and Wales, as well as from other public and private sources, including estate agents and property professionals.
Once Zoopla has this information, it uses algorithms and data analysis techniques to process and compare the data, taking into account factors such as the location, size, type, and age of the property, as well as local market conditions. This allows Zoopla to provide an estimated sold price for a property, which is based on similar recent sales in the same area.
It's important to note that the sold house prices provided by Zoopla are estimates only, and are not an official valuation of a property. The actual sold price of a property can vary significantly from the estimated price, and may depend on a number of factors, including the negotiating skills of the buyer and seller, and any specific features or circumstances of the property or the sale.
Why does Zoopla not show all sold house prices?
Zoopla like many other property websites, does not show all sold house prices for several reasons:
It's important to note that while Zoopla and other property websites can provide a good indication of the average sold house prices in a particular area, they might not always reflect the exact sale price for a specific property.
If you want to know the exact sold price of a property, you can check the Land Registry website in the UK, which provides this information for a fee.
Is my Zoopla house value realistic?
How reliable are Zoopla house valuations? Getting a house valuation on Zoopla is quick and convenient, but its accuracy is questionable. To be honest, Zoopla's property estimates are not the most accurate representation of your property's worth.
This is because they are solely based on data and lack personal evaluation. They don't take into account the perception of the buyer or the appraiser's opinion, which are crucial factors in determining the value of your property.
Moreover, Zoopla can overestimate the value of your property, leaving you with unrealistic expectations.
This can make it challenging to sell your property, as buyers are unlikely to pay the high asking price you have in mind. On the other hand, if Zoopla gives you a low estimate, you may end up selling your property for less than its actual worth.
So, why are you considering the accuracy of Zoopla's estimates? Probably because you're thinking of selling your house and setting an asking price.
However, setting the price too high or low can affect your ability to sell and lead to a downward spiral. Setting the price too high can result in a lack of interest, leading to price reductions. Setting it too low can lead to a flood of inquiries and pressure to accept an offer quickly.
To avoid all these challenges, you can opt for an off-market sale. As a leading cash buyer, we offer you a straightforward cash offer, eliminating the need for an asking price, viewings, and the hassle of being part of a chain.
Plus, we cover all the fees, including solicitors and surveys, and can have you completed and moved in just 7 days, which is often faster than going through an agent.
It's important to note that while Zoopla and other property websites can provide a good indication of the average sold house prices in a particular area, they might not always reflect the exact sale price for a specific property.
If you want to know the exact sold price of a property, you can check the Land Registry website in the UK, which provides this information for a fee.
How should you get a house valuation?
When trying to establish how much your house is worth, you don't want to be relying on faulty information, especially when it could cause you to set your asking price at the wrong level.
Personally, we'd say that while the Zoopla online house valuation tool is a good guide, you should still enlist the help of at least one property professional.
And while we do recognise that agents may adjust their valuation because they're touting for your business, just as a surveyor might be slightly more conservative, the important thing is that you get it valued in the flesh.
Get a valuation based on data as well as saleability and you're far more likely to have a smoother sales experience. Here are a couple of ways you can ensure that your valuation is accurate...
How accurate is a Zoopla house price estimate?
As we mentioned, a Zoopla house estimates aren't very unrealistic, and so you may be wondering if it’s not realistic, how accurate is Zoopla?
Well, whilst it would be ideal if Zoopla could give incredibly accurate valuations, this isn’t the case, with a lot of their estimations being extremely inaccurate.
One of the reasons for the inaccuracy of Zoopla is because the figure is based purely on data and doesn’t involve any face-to-face valuation, where a person is able to see a property and its quality with their own eyes and give their opinion on what the property is worth.
There are many other reasons a Zoopla price estimate can be inaccurate, which we have detailed below:
A property's condition
When buying a house, condition plays a major role in the buying decision. Have two identical houses on the same street and one may fetch £20k more than the other purely because it 'looks' to be in a better condition. So by that we mean it's been staged, or at least tidied up. Chances are, if a buyer can't see themselves living in a property, their offer will be lower. Hence why you'd be putting yourself at a disadvantage by not putting in the time and effort into staging your house for viewings. But, because Zoopla estimates are based purely on data, they're not to know what you've done.
Upgrades and additional extras
Just as condition influences the sale of a house, so do any additional extras. After all, a house with a recent extension, well-fitted kitchen and top of the line bathroom suite is worth far more than it would be without them. It's the same outside too. Spend thousands landscaping your garden to make it more usable, and chances are buyers will pay a premium. Although if you ask Zoopla they don't. In fact, none of the improvements influence your estimate at all.
Incorrect details
What with Zoopla working purely around data, accuracy is vital. Only in some instances, the data they have about your property is incorrect. So perhaps when you bought it, the agent tried to imply that the cubbyhole of a office was in fact a bedroom. Or perhaps there was a mix up with the tenure. Either way though, because Zoopla is orientated purely around data, any mistakes do influence your overall estimate. Therefore, your 4-bed according to Zoopla worth more £30k more than the house next door, all despite the only difference being that that house was sold as a 3-bed with an office.
Different styles of housing
Not every house on a street is the same. You might find a Georgian town house next to a 1950s terrace, or a council house from the 80s next to a dormer bungalow. All of which can largely affect their appeal, and in turn how much a buyer is willing to pay. For instance, period properties are far more likely to demand a premium, whereas a ex-council house is often going to be consider less desirable. However, data on Zoopla doesn't show that. It may list the tenure, but otherwise it's in the dark about any period features or less desirable qualities that a property may have. All of which makes calculating an average for the street a pretty difficult task.
A lack of comparable
Something else to take into account is that Zoopla bases its prices on an average. One of its main sources of local knowledge is 'recently sold' prices - basically the prices of homes that have sold within close range of yours. But what this means is that if you live in an area where the last sale was in 2010 (i.e. not recent), then the average of the data in your local area will be less accurate. To get more comparable you need to expand your search into other streets, however the chances they'll match in terms of property type and size are slim. Now if you ask us, valuations that don't rely on recent information aren't reliable at all - must be why they call it an estimate.
A tell-tale sign that Zoopla is aware of how inaccurate their figures can be is that they recommend inviting an estate agent round to your property for an in-person valuation, with Zoopla providing you with details of estate agents in your local area and what their average asking price is for their properties so you can choose the one which best matches where you feel your house will be priced at.
How can we help?
If you’re thinking of selling your home, before you start to go down any of the more traditional routes, it could be worth your while to get in contact with us. We can offer you a fast sale whilst covering all your legal fees, giving you a price upfront.
We offer more than a Zoopla estimated house price – we won’t just give you an answer as to what we feel your property is worth, we will buy your property for this amount in cash, with all your fees included, meaning you will get this amount in full, without having to pay a penny.
Although we will consider certain factors when giving you a house valuation, such as the condition and location, it won’t affect whether or not we will buy your property. We buy any property in any condition and location and our offer and level of customer service will never be affected by your reason for selling quickly.
Our property consultants are experienced in working with a variety of customers who need a quick sale for many different reasons. We will appoint you a specific agent who will be your main point of contact throughout the whole process, helping you to feel reassured or supported.
We’re unable to give you the market value for your property, but we will give you a fair price and all fees are included, so there’s no need to worry about hidden costs or having to pay large amounts to sell.
Why choose us?
We’re more than just a Zoopla house value or a standard cash house buyer. The Property Buying Company is owned and operated by property professionals, founded in 2012, and with over 50 years of combined experience, you can be sure you’re in safe hands.
As we’ve mentioned, we’re also a member of The Property Ombudsman and the National Association of Property Buyers, further emphasising why we’re the people you can rely on. On top of this, we understand what it’s like to sell a property and all the stresses that can come along with it, so we will always be up for a chat to listen to your worries, and we handle the whole process for you.
We’re also rated excellent on Trustpilot, with over 1,000 reviews.
We will always be open and honest about our service and process, with us telling you upfront what we’re able to offer you for your property. We will keep you constantly updated, including any issues we face and how we will do our best to overcome them for you.
We do more than just giving you a house price estimation; we will give you a cash price that we can buy your house for in full, covering all the fees, including the legal ones, and also completing in a timescale of your choice! It’s never been easier to find your house value and sell fast!
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