Property: Homeowners are 'overpricing' their homes - full list of best and worst areas
A PROPERTY expert has revealed that most homeowners in England and Wales are "overpricing" their homes which could lead to homes sitting on the market for "twice as long". The new data also found how much homeowners are overvaluing their properties by in each postal area.
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New figures have revealed that homeowners in England and Wales are overvaluing their properties by a staggering eight percent, on average. The research, which was conducted by Quick Move Now, compared homeowners valuations with that of formal independent estate agent valuations. Danny Luke, Quick Move Now’s managing director, said in 2019 when they first started comparing figures, people were overvaluing their properties by an average of eleven percent.
The lower average indicates that homeowners are becoming more accurate at assessing how much their home is worth.
Property sites, which allow homeowners to access information about the local housing market and recent sold prices in an area, are making it easier for homeowners to figure out the market value of their property.
Danny said even when armed with this data, homeowners estimates can be “pretty far off their property’s actual value.”
He continued: “Overpricing your property by eight percent when putting it on the market could have a significant impact on how long it takes to sell.
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“Previous data has suggested that over-pricing your property can result in it sitting on the market for twice as long as an accurately priced property.
“It can be very difficult to view your own home objectively, so it’s always best to get a local estate agent to visit your property for an accurate and up to date valuation.”
The new data also unveiled which areas people are overvaluing their homes the most.
Homeowners in Harrow, Romford and Telford are most accurately valuing their homes.
They are over-valuing their homes by an average of six percent.
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But those living in Llandrindod Wells gave the least accurate valuations, overvaluing by an average of 20 percent.
Residents living in the picturesque town of Harrogate in North Yorkshire overvalued their homes by an average of 17 percent.
However, all areas tended to overvalue properties rather than undervalue them.
A booming property market and surging house price growth may have contributed to homeowners overvaluing their homes.
Danny said those living in urban areas where homes are similarly designed in a small area are likely to have more comparable data which allows homeowners to get a more accurate idea of their home’s value.
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He said those living in rural areas will find it more “challenging” as homes are more spread out which can make it difficult to compare prices.
The property expert continued: “Whilst it is handy to be able to go online and get a rough idea of how much your property might be worth, it is always best to ask a local independent estate agent for a formal valuation.
“Ultimately, any property is only worth what someone is willing to pay for it and a local estate agent is likely to have knowledge about the local market that an online valuation tool simply can’t compete with.
“That is especially true in the current market where things are changing very quickly from one week to the next.
“Now that the ‘cost of living’ crisis is really starting to hit, we are definitely beginning to see a cooling of the market.
“The first two weeks of marketing your property are the most important in terms of attracting a buyer, so it’s vital that you price your property correctly from the start.”
The average percentage homeowners are overvaluing their properties by in each postal area:
St Albans - eight percent
Bath - nine percent
Birmingham - seven percent
Blackburn - 13 percent
Blackpool - 12 percent
Bolton - nine percent
Bournemouth - 10 percent
Bradford - 11 percent
Brighton - 10 percent
Bristol - 10 percent
Bromley - 11 percent
Cambridge - 10 percent
Canterbury - 11 percent
Cardiff - 13 percent
Carlisle - 10 percent
Chelmsford - 11 percent
Chester - eight percent
Cleveland - 13 percent
Colchester - 10 percent
Coventry - seven percent
Crewe - eight percent
Croydon - nine percent
Darlington - 10 percent
Dartford - 10 percent
Derby - 14 percent
Doncaster - 10 percent
Dorchester - 15 percent
Dudley - 10 percent
Durham - 13 percent
East London - 10 percent
Exeter - 11 percent
Gloucester - nine percent
Guildford - 11 percent
Halifax - 11 percent
Harrogate - 17 percent
Harrow - six percent
Hemel Hempstead - 10 percent
Hereford - 14 percent
Huddersfield - 12 percent
Hull - 10 percent
Ilford - seven percent
Ipswich - 12 percent
Kingston upon Thames - nine percent
Lancaster - 14 percent
Leeds - 11 percent
Leicester - seven percent
Lincoln - eight percent
Liverpool - nine percent
Llandrindod Wells - 20 percent
Llandudno - 10 percent
Luton - 10 percent
Manchester - 10 percent
Milton Keynes - 12 percent
Newcastle upon Tyne - 13 percent
Newport - 12 percent
North London - 12 percent
North West London - 12 percent
Northampton - eight percent
Norwich - 10 percent
Nottingham - 10 percent
Oldham - 10 percent
Oxford - 10 percent
Peterborough - 10 percent
Plymouth - 12 percent
Portsmouth - 10 percent
Preston - 11 percent
Reading - 11 percent
Redhill - eight percent
Rochester - eight percent
Romford - six percent
Salisbury - nine percent
Sheffield - nine percent
Shrewsbury - seven percent
Slough - 13 percent
South East London - 10 percent
South West London - 11 percent
Southampton - 10 percent
Southend-on-Sea - 11 percent
Stevenage - 11 percent
Stockport - nine percent
Stoke-on-Trent - 10 percent
Sunderland - 14 percent
Sutton - 13 percent
Swansea - 11 percent
Swindon - 11 percent
Taunton - nine percent
Telford - six percent
Torquay - 10 percent
Truro - 13 percent
Tunbridge Wells - 10 percent
Twickenham - nine percent
Uxbridge - 10 percent
Warrington - 10 percent
Watford - 10 percent
West London - seven percent