"It's clear that the market has slowed, but to what extent is difficult for homeowners to gauge"
Quick Move Now asked homeowners how much they thought their properties were worth and then compared the figures with local estate agent valuations. The results showed a strong trend of owners overvaluing their homes.
Property owners in Cambridge were most likely to have an accurate idea of their property's value, but many still had a tendency to overvalue. Self-valuations in the area were, on average, 5.9% higher than local estate agent valuations.
People living in Llandrindod Wells were least accurate with their self-valuations, suggesting figures an average of 22.9% higher than estate agent pricing.
Regionally, the East of England is the most up-to-date with current property values, whilst those in the North East were the least accurate.
Danny Luke, Quick Move Now's managing director, said: “Our research showed an overwhelming tendency to overvalue your property. Whilst there were some homeowners who had a very accurate idea of their property's value and a small number who undervalued their property, most homeowners significantly overestimated the value of their homes.
“When we carried out similar research last year, we found that homeowners were overvaluing by an average of 11%, which suggests owners are now less in touch with the local property market and home values. I believe there are several reasons for this. Firstly, 2022 saw a much more buoyant property market. This meant more properties were selling and homeowners had more of an idea of how the local market was performing. In most areas, properties were selling at the asking price or above.
"Now, it's clear that the market has slowed, but to what extent is difficult for homeowners to gauge. When properties do go on the market, local homeowners may well look up the online listing, but initial asking prices can give quite a deceptive picture. According to Zoopla, around 40% of properties are having to reduce their asking price to attract buyers, and properties are selling for an average of 4.5% below the final asking price.
"If homeowners are basing their self-valuations on neighbouring asking prices, the reality of how much their property might be worth is likely to be disappointing.”
