Using zoopla for valuations

[Matthew Milner]

I much prefer to use rightmove as my main source of finding properties however i do occasionally use zoopla now and again.

My main question though is how accurate is the zoopla valuation tool?

I know you can update property details such as number of rooms, type of property, size of property etc...

But is this really accurate of the current market?

I'm assuming that the valuation is mostly based on recent sales in the area but is this sort of desktop survey what actual mortgage valuers use?

I agree that an estate agents valuation tends to be higher than a mortgage valuers valuation.

Can we rely on zoopla for a true valuation?

It would be good to here your views on this matter.

[Julia Urquhart]

I think Zoopla valuations are extremely unreliable. They are based on an algorithm applied to last sale price & can be manipulated by the owner. 

Rightmove's sold prices is a much more useful tool.

[Conrad_Paton]

Hi

Zoopla's online valuation is a gimmick.

For accurate valuations you need direct comparable sold properties within certain distances and timeframe than the one you are valuing.

Just like the mortgage values and estate agents do.

Hope this helps

Conrad Paton

[dennis hughes]

On 10/10/2019 at 8:59 AM, matthew milner said:

I'm assuming that the valuation is mostly based on recent sales in the area but is this sort of desktop survey what actual mortgage valuers use?

No, as @julia urquhartsaid, it is an algorithm which takes the last known sale price and adds a percentage uplift or downlift.

I think, as a relative newbie, (two properties down, looking for the third and fourth) that this is possibly the most difficult skill to master when evaluating a potential property purchase. It drives almost all your purchasing decisions.

We're currently looking at an auction property that has a final market value of somewhere between 110k and 150k. Until we can tie that down how can we possibly know what to bid?

Taking that example, say our total costs plus desired profit are 50k. At a 110k valuation we bid up to 60k and we are happy. But we could easily be outbid by someone using the higher valuation, with the same criteria, but happy to bid 90k.

I'm waffling, sorry. Use zoopla, rightmove and just about everything else you can think of to do your own valuation. 

[Rybu79]

My neighbours house is £20k higher on Zoopla in value, it’s a smaller house and cost less when it was built than my house back on 2005 but was purchased by the landlord from new. 
 

we are second owners and got a good price - £20k less than the first owners got it for from the builder.
 

The algorithm doesn’t work and is a waste of time - in my opinion. 

[Conrad_Paton]

Hi Dennis,

 

Sorry to hijack this thread, but if you are unsure of your end valuations then maybe you should seek advice?

Your end valuation of £110k to £150k has a large variation in it of £40k. This is huge compared to your estimated sale price.

I suggest you look at the SOLD prices of purpose built flats and terraced houses as these are the easiest to value. This should help get your eye in, for valuations.

Practice for a few months, visiting auction properties, checking the sold prices on the auction sites and comparing these to your own estimates.

When you get good at purpose built flats and terraced houses, then you can try it with other properties aswell.

The difficult ones are the barn conversions and converted flats from strange buildings ( eg small mills) etc that are one offs. I'd advise to stay clear of these until your experience grows.

Hope this helps.

Find and connect with me on LinkedIn and we can chat more there?

CONRAD PATON

[Mark Powell]

Hi all,

Whilst I don't disagree that zoopla valuation is virtually always wrong, it is useful to look at as part of research as it does provide house price change data (which is what is applied to the last sold price) and there are links to recent sales in there. So it should be in the right ball park. 

 

Granted I'm talking from my experience as a house owner who hasn't yet invested but so long as you qualify the information you use and understand its limitations it can be useful. 

[Matthew Milner]

Thank you all for your comments.

I always use the valuations from zoopla with a pinch of salt and much prefer to use the sold prices found using Rightmove.

It is always difficult when a house of a similar type hasn't sold in the area for over 10+ years.

But i guess working out house prices is a skill in itself.

[dennis hughes]

16 hours ago, conrad_paton said:

Hi Dennis,

 

Sorry to hijack this thread, but if you are unsure of your end valuations then maybe you should seek advice?

Your end valuation of £110k to £150k has a large variation in it of £40k. This is huge compared to your estimated sale price.

I suggest you look at the SOLD prices of purpose built flats and terraced houses as these are the easiest to value. This should help get your eye in, for valuations.

Practice for a few months, visiting auction properties, checking the sold prices on the auction sites and comparing these to your own estimates.

When you get good at purpose built flats and terraced houses, then you can try it with other properties aswell.

The difficult ones are the barn conversions and converted flats from strange buildings ( eg small mills) etc that are one offs. I'd advise to stay clear of these until your experience grows.

Hope this helps.

Find and connect with me on LinkedIn and we can chat more there?

CONRAD PATON

Thanks Conrad for your thoughts.

I was using that as an extreme (although factual) example, we're pretty happy with the valuation that we have now put on the property. It was just my feeble attempt to demonstrate the range of end values that sites like zoopla can throw at you and the need to look at every possible source for information. 

[Tim Wragby]

The Zoopla valuation tool - as noted above - is very poor and is not reliable enough as a tool, in my opinion, to be used for a meaningful valuation.  It is an algorithm that is too indiscriminate in the properties it includes, takes no account of equivalent size, condition and real location (ie a property 2 streets away can be massively different in price due to location of other factors such as proximity to negative factors or positive factors).

Agents have access (and pay handsomely for it) to back room tools for creating meaningful comparables of near like for like as they can and a good agent will use local knowledge to create their best valuation range.  Non-agents can use a useful tool www.mouseprice.com which has a limited free tool with an upgradeable pro site @ £28 per month - whether you can do a one-off one-two month contract length each time you want to activate searches when adding to your portfolio I do not know but it could be money well spent.  If you do not choose this tool I would trawl local streets for similar looking properties, currently on the market and then look at devising your own algorithm of what you would offer based on condition and what you are going to have to spend to bring the property in question up to standard.