How reliable are Zoopla property values?

kodys_angel

Hi all,

I'm just wondering if anyone can share their experience of Zoopla property values?

Long story short - bought a house with my ex-partner almost 7 years ago... Loan was 100% mortgage. Market crashed, we broke up, house went into negative equity...

We wanted to sell 2 years ago, but property value still wasn't anywhere near what we owed, so entered into a 2 year fixed mortgage. We've been paying interest only for the last 7 years (I know! I know!) so the loan hasn't decreased at all. With no equity we were forced to stay with the original mortgage co, who despite the super low interest rates had us at 6% ish The property is currently rented and the contract is due to finish in May, which is when the current fixed term is up and we are able to sell without a fee.

Zoopla currently values the property at just over the loan value... I have been in and updated this honestly to reflect the condition of the property (some modernisation required). I have been keeping an eye on sold prices in the area and they do vary massively for 1 bedroom properties

To be honest, I just want to be rid of this place as it has been a black hole for money for the past 7 years...

I am trying to investigate all options and be realistic - I'm willing to take a small loss (about 5k each, so 10k in total). Looking into the options where EA buys your home at less than market value, or even handing back the keys!! I have worked hard to pay off all debts and fix my credit record. Now all green for the past 5 years, with only 1.5k to go!

Any input would be welcome.

Thanks

DRP

Zoopla estimates are not very reliable in most cases.

I would be checking actual sold prices in the area instead via the land registry (or zoopla, rightmove)

http://houseprices.landregistry.gov.uk/

QTPie

I would get 3 EAs in to actually value the property "for a quick sale".

Good luck.

kodys_angel

Thanks DRP.

I have been keeping an eye on all the similar properties recently sold over the past year.
Two show recently sold STC on Rightmove, up for 125k... One has now moved onto the Sold prices at 110k, another my friend's sister bought for 123k. Identical houses, not much difference in condition.
The completed sale shows on Right move, but not on Zoopla? And the house my friend's sister bought doesn't show at all? I guess it just depends on the buyer...

If we do hand the keys back, how do the mortgage co determine the value of the property?

[Deleted User]

I put a price on my property on Zoopla's TemptMe listings. All I got was junk mail from local estate agents claiming people were waiting to buy my home. Funny how 2 other properties on the same street had been up for sale for a year at the time.

harrys_dad

Do not hand the keys back., The mortgage company have little interest in getting the best value when they sell the house (or it is sold on their behalf), and you will still owe any shortfall.

How does the rent compare to the interest only mortgage payment? At the end of the fixed term the rate should revert to your Lender's standard variable rate (SVR). Do you know what this is? It may actually be cheaper.

Mokka

I have been checking Zoopla for the past year. Even though the market in London has gone bonkers I still think their valuations are overly optimistic. I would have to be very lucky to achieve their estimate- but in this climate anything is possible.

hazyjo

They overvalued my last house by way over £100k (may have been nearer £200k, I forget).

Ignore them unless lots of similar properties have recently sold. If they're working it out on old sold prices (even over 3 years ago), it'll be pointless.

Jx

kodys_angel

The rent unfortunately falls short by about £80/month, so we currently pay £40 each.

I have just checked the STV on the mortgage co's website... It's 5.99% so looks like these payments will stay about the same if not go up a bit... If I had been a bit more savvy (I was only 22 when we bought this place, very influenced by EAs pushing us to buy instead of rent!) then I'd have done a bit more research on mortgages etc. At the time, I unfortunately trusted my then-partner to read all the paperwork to later find out that I had signed a 5 year fixed deal, not a 2 year as the mortgage advisor had sold us. But we live and learn I guess!

My main worry is the time between the tenant moving out and selling the house... We will obviously both be liable for the mortgage in this time... My savings will cover my half for about 4-6 months at most, leaving me broke should there be any kind of emergency... (I try to have about £1000 stashed away for things like MOT, insurance excess or emergency need a new car fund!)

Neither of us are in a position to be able to move back into the property, so that's not an option even short term.

Hence why I want to get rid pretty quickly, but not at the cost of getting into mega-debt again. It's been a long road the last 5 years!

All this is assuming that I haven't bought the winning lotto ticket for tonight (which I am beginning to feel is the only realistic way out of this scenario )

tigsly

I'd go to market before the tenants move out - if thats possible - so get estate agents round.. 3 to get valuations - get EPC done, get marketing done.. so it either goes on in March (beginign of spring rush) .. or at least be ready to go on the market asap after your tenants leave...

I say this because last year I went on the market in May - and was told i'd missed the Spring Rush.. as a result I didnt' sell..

Also, Zoopla estimated my property was worth 200K less than an identical house 4 doors down the road.. and I'm worth 100K less than the other half of the semi... (Mine sold for less when I bought it because it was probate, the sellers were not to greedy - and the house needed work.. take the work into account and Zoopla 'price matches the one down the road... but it wont 'save' this figure...) I'd look for 'local sale prices' as a more realistic estimated. (I think zoopla prices are VERY variable - based on their estimates and sales prices.. sometimes they are 'spot on ' and sometimes they are way over or way under!)

kodys_angel

Just had a call from Quickmove - one of those companies who buy your property cash for a quick sale. Been sent an estimated offer for 100-105...
I guess my best bet would be to put it on the market and hope someone bites for about 115 and take the hit....

This is going to be a long road...