Zoopla accuracy

[INeedABarbieDreamhouse]

I understand that Zoopla is an algorithm but how accurate is the estimated house value?
My own house has sold just above the top estimate and I have done significant internal work since I bought it.

I'm interested in a property that has been on the market more than 6 months. It's currently empty and needs new kitchen, bathroom etc. It was valued significantly (as in over 20% more) above the current asking price but has been reduced since. It's still £60k over the zoopla price. I offered in this ballpark which I think is a fair price based on the area, but more than 10% under asking. They refused it understandably.

I'm reluctant to increase my offer but there's nothing else on the market and I think I'd be sad if someone else buys it because it has so much potential -heart talking.

I don't want to pay significantly over for something that isn't going to be worth that when all of the work has been done - head talking.

Any thoughts?

I think it’s ballpark when it’s an estate of similar houses, but doesn’t take into account condition. When houses are unique it’s more complex, but a good gauge to see how pricing on thr area has increased.

Also what do you mean over the zoopla price, zoopla has a wide range. Do you mean over the top end estimate?

Also the mortgage company if you need a does a valuation which is more reliable, and so it’s hard to over pay if you’ve a mortgage.

@Bluntness100

Also what do you mean over the zoopla price, zoopla has a wide range. Do you mean over the top end estimate?

Sorry, yes, over the top estimate. It's not a unique property. There are 3 on the same road and they have the same estimate. One last sold 2019. Zoopla estimate is £402-460k. They're asking £520k.

I am in the process of buying a house. It is a new-ish (under 15yr old) build semi. Both sides are an exact mirror image of each other. No extensions, same parking, etc. The one I am (hopefully!) buying is estimated at 8% less than next door on zoopla.

The Zoopla valuation takes into account the last sale price and how prices in the area have changed since. So if they got a good deal when they bought it, the Zoopla estimate might be low. Also if they owned it for a long time, the estimates can be less accurate. However it doesn't sound like it's in great condition. Ultimately it depends how much you want it and how long you might stay. We bought our house hoping to be here for 25 years plus, so weren't so concerned about resale value.

Cross post with yours. I see the other houses have the same estimate so sounds like they want an unreasonable price really.

Yes, they are justifying it with some additional work that was done several years ago - it all needs redoing now, the house has been rented out and isn't in great shape.

Someone just submitted a very low offer on our house, based on the Zoopla estimate. We told them to jog on. Zoopla estimates £345k, we've just accepted an offer of £594k.

All the details on Zoopla are correct, it just got it completely wrong! I think because our house is larger than others in the terrace but has only sold once since the records started (to us 6 years ago).

Ultimately zoopla is irrelevant what’s relevant is what the current owners will sell for and what the mortgage company will value it at.

Given that it's been on the market so long I feel confident it's over priced. Which makes me sad because I do love it!

Zoopla estimates can only be used as a very very rough estimate, if that, unless the majority of houses in that postcode have sold very recently (unlikely unless new build).

I'm currently trying to buy a house for which an offer has been accepted. Offer is at £12k lower than the lower end of Zoopla, and £47k lower than the estimated Zoopla value, however the range from lower to upper Zoopla is £71k. Vendor has been in situ over 45 years.

A note useful barometer would be what similar houses in your road/area have sold for in the last 18 months or so. Any earlier than that, and it would have been pre-Covid, so a lot of the madness in the market you hear about how hadn't yet descended.

The problem is Zoopla is just so inaccurate. I’ve just plugged in my house and the lowest estimate is £100k less than I paid for it 3 years ago - so incorrect there. Then the top estimate is also out by at least £100k as well.

It’s not me just thinking my house is worth at least £100k more than Zoopla says, it’s market fact on similar sold prices shown on the Land Registry that Right Move sold prices show.

It’s simple impossible to use Zoopla as a guide. And I say this with certainty taking into account my current illustration, that of my previous house plus my late parents house. All of which widely incorrect on Zoopla.

But you can’t argue with Right Move sold prices.

@INeedABarbieDreamhouse how much was the 2019 property sold for, and in what condition?

I am in London and find zoopla WILDLY inaccurate.

I use mouse price or rightmove sold prices to get an indication of real sold prices /current market values

I'm in North Yorks and it's wildly inaccurate in my area too.

The algorithm just isn't enough for something as variable as house value. It doesn't know whether a property has been renovated, extended etc.

*A more useful barometer would be...18 months or so taken from Land Registry or Rightmove sold prices

Typo, plus I meant to add!

It's not. Not at all.

Zoopla is pretty inaccurate in my experience.

[quote Starseeking]@INeedABarbieDreamhouse how much was the 2019 property sold for, and in what condition? [/quote]
£425k very similar condition from what I can see on photos

Not especially accurate, for example, every house on our street is valued quite similarly but they are all quite different in terms of style, size, plot size and age. Some have not been touched for 50 years, some have sold more recently and had £££ spent on renovations. Ours is slightly lower because we bought at a very good price and the algorithm has adjusted for that. But ours is one of 4 that have actually been properly modernised. Other houses will need really significant work done to them, and we are in a conservation area which makes things £££.

Zoopla is moderately useful in London where there’s a lot of data on a lot of very similar houses, but only as a vague steer. I think everywhere else seems too variable to be of much use. And of course the property market has jumped around so much over the last two years it will be even less accurate. From conversations with our mortgage advisor it doesn’t seem to be taken seriously by the industry - or to base any house purchases on.

Zoopla estimates my house value to be £472k and the identical house next door to be £519,000.

They bought there's in 1997 and we bought out in 2011 so I've always assumed it's based on the amount prices go up as there really is no difference between our houses (except that ours is more modern inside).

Ours is very inaccurate on Zoopla, surely it only works on streets of similar or identical houses.

Where are you OP? Prices here have gone up 20% since 2019 so an offer of £510k would be in line. It depends on market conditions and ultimately, how much someone is willing to pay…