A new survey by Zoopla has found that the majority of homeowners undervalue their property, with some more than £100,000 short of estate agent valuations.
Whether you’re thinking of selling or are planning to stay put, property prices are something of a national obsession, and there are easy ways to get an indication of how much your home might be worth.
Read on to find out the steps you can take and for advice on the features that add value to properties.
Majority of homeowners undervalue their property
Zoopla’s research found that 78% of homeowners don’t have a clear idea of how much their property is worth, with 64% undervaluing their home.
Some 35% of respondents to the property portal’s survey undervalued their property by more than £100,000 compared with estimates from professional estate agents.
At the other end of the scale, 13% of homeowners were disappointed to find their home was worth less than they had anticipated, by an average of £47,000.
People who had owned their home for 30 years or more were most likely to have an accurate understanding of its value.
- Find out more: what’s happening to house prices?
Ways to quickly gauge your property’s value
1. Check Land Registry data for your area
For a rough estimate of the value of your home, the Land Registry is a good place to start.
Its data is based on actual sale prices rather than asking prices – comes with a two-month lag, but still offers useful insight.
You can search by property type (for example, detached) and local authority to find the average sale price in the most recent month available (currently January).
2. Use the Land Registry’s ‘price paid’ tool
You can also use the Land Registry’s ‘price paid’ database to find specific property sales on your street or within your postcode area.
However, this information can take a long time to update – sometimes even a year or more – so should also be used as a rough guide.
3. Get an online valuation
A number of online property portals, including OnTheMarket, Rightmove and Zoopla offer free online valuations, and some estate agents also offer similar tools.
These provide a quick way to get a rough estimate of what your property could theoretically sell for, although the price bands shown can be large (for example, £150,000-£200,000).
4. Research local listings
You can also use property portals to research asking prices for similar properties in your area, helping you build a clearer picture of your home’s potential market value.
Asking prices are best used as a guide, as there’s no guarantee the seller will achieve the price they want.
Zoopla’s listings show how long a property has been on the market, and whether it has had its asking price reduced.
Rightmove doesn’t currently show price changes, but you can install the Google Chrome extension Property Log, which reveals the price history of properties.
5. Find out what’s happening to the market
If you’re not thinking of selling in the short-term, but are interested in house prices, we’re here to help.
Check out our news story on what’s happening to house prices, where we round up the latest predictions from major banks, estate agents and mortgage brokers.
We also regularly update the page with the latest data from the four leading house price indices, helping you stay informed about the current state of the property market.
How to get a more accurate valuation
For the most accurate valuation, it’s best to speak to local estate agents with experience selling similar properties in your area.
It’s worth asking friends, family or neighbours for recommendations to help you find a trusted agent.
To get a balanced view of your home’s value, always get quotes from at least three different agents.
Our guides on finding the right estate agent and estate agent fees offer advice on comparing services.
What can impact your property’s value?
The size and type of your property are the most obvious factors that influence its value.
However, other elements such as being close to an outstanding school, having good local amenities and access to strong transport links can also significantly boost a property’s value.
For example, last summer Santander research found that homes near a top school cost an extra £21,000.
On the other hand, features such as an outdated kitchen, limited parking or being a high flood risk can reduce a property’s appeal.
A 2023 study by Bayes Business School found that homes in England with a flood risk sold for 8% less than unaffected properties. For those with an extreme flood risk, the discount could exceed 30%.
