Online valuation tools

GaryBC

Hi all

Has anyone ever done a study on the accuracy of online valuation 'calculators' in relation to actual selling price? 

Thanks. 

BJV

No but I have just sold my car using Motorway. ( it was collected on the 2nd of jan 2024 )

It was slightly lower than the estimated price but the price it sold for was still £2000 more than we buy any car and £1000 more than my new dealership offered. 

So sorry where you talking about cars or houses ?

lincroft1710

I have certainly compared Nationwide's and Halifax's estimates of past values with actual sales and found them woeful. But I presume you are looking at current values. 

GaryBC

BJV said:

No but I have just sold my car using Motorway. ( it was collected on the 2nd of jan 2024 )

It was slightly lower than the estimated price but the price it sold for was still £2000 more than we buy any car and £1000 more than my new dealership offered. 

So sorry where you talking about cars or houses ?

😁😁 Doesn't the forum title sort of give a bit of a clue! 😂😂

GaryBC

lincroft1710 said:

I have certainly compared Nationwide's and Halifax's estimates of past values with actual sales and found them woeful. But I presume you are looking at current values. 

Yes, currently. I know they are plastered with caveats but I reckoned that, surely, they must have at least some connection with reality? 

user1977

They're "accurate" but with a massive margin for error, given all they're generally doing is applying a regional inflation figure to the last recorded sale price.

FreeBear

user1977 said:

They're "accurate" but with a massive margin for error, given all they're generally doing is applying a regional inflation figure to the last recorded sale price.

My house, last sold waaaay before the internet was even thought of, so no historical data to use.

Zoopla estimate current value to be £288K to £352K. Next door, again, no historical data available, estimate £293K to £323K. Their garden is larger, but lacks a brick built garage.

Last sale of a similar property a few doors down was at £328K in 2021 - Probably overpaid, but it has helped to elevate property values along *this road.

GaryBC

FreeBear said:

user1977 said:

They're "accurate" but with a massive margin for error, given all they're generally doing is applying a regional inflation figure to the last recorded sale price.

My house, last sold waaaay before the internet was even thought of, so no historical data to use.

Zoopla estimate current value to be £288K to £352K. Next door, again, no historical data available, estimate £293K to £323K. Their garden is larger, but lacks a brick built garage.

Last sale of a similar property a few doors down was at £328K in 2021 - Probably overpaid, but it has helped to elevate property values along *this road.

So not a million miles away by the sounds of it. 

Newbie_John

But the online prices there jump a lot. My street consists of flats and houses - linked detached, terraced.. every time there is a sale of a flat nearby for lower price - it drags all the prices down, every time there is a sale of a house - it all jumps up.
We bought it in 2018 and since then it's been anywhere between -10% to +50%.

But tbh it's a very good place to start - it compares local prices with sale prices around. Good that it gives a range for example 220-280 as not all 3 bed houses are the same. Some come with conservatories, garages, larger gardens, solar panels, recently refurbished and some are heavily damaged - and that's something that has a huge impact on the final price. 

GaryBC

Newbie_John said:

But the online prices there jump a lot. My street consists of flats and houses - linked detached, terraced.. every time there is a sale of a flat nearby for lower price - it drags all the prices down, every time there is a sale of a house - it all jumps up.
We bought it in 2018 and since then it's been anywhere between -10% to +50%.

But tbh it's a very good place to start - it compares local prices with sale prices around. Good that it gives a range for example 220-280 as not all 3 bed houses are the same. Some come with conservatories, garages, larger gardens, solar panels, recently refurbished and some are heavily damaged - and that's something that has a huge impact on the final price. 

PS. How long can you stay a Newbie?!? 😂😂

Newbie_John

I thought my journey here will end up with 1 post.. I'm not even John
If I ever hit 500 posts I'll ask to get it changed to Average_John