Homeowners overvalue their properties across England and Wales by an average 6.8 percent in 2016. This is according to data released today by Quick Move Now.
The company, which buys property directly from homeowners, compared the figure owners believed their property to be worth to the price the property eventually achieved being sold on the open market.
See also 5 things that can devalue your home.
Quick Move Now also released figures for the previous four years, which suggest that although homeowners are still overvaluing their properties, their expectations have become increasingly more accurate in recent years.
Average amount homeowners under / overvalue their property by:
|Year||Average amount homeowners over/undervalued their property by|
|2016||Overvalued by 6.80%|
|2015||Overvalued by 9.85%|
|2014||Overvalued by 13.69%|
|2013||Overvalued by 13.93%|
|2012||Overvalued by 18.07%|
Danny Luke, Quick Move Now’s managing director, commented: “After the property boom, many homeowners became overly optimistic about the value of their property. Widespread coverage of rising property prices and the profit on offer through the buying and selling of property gave many homeowners false expectations. This can be seen in the figures from 2012.
Thankfully, as time has gone on, homeowners have become more realistic about the value of their property, but, as the figures for last year show, with homeowners still overvaluing their property by an average 6.8 percent, many still believe their property to be worth considerably more than its true value.
When it comes to regional figures, it seems homeowners in Greater London have been most successful in accurately valuing their properties over the last five years. In fact, according to Quick Move Now’s figures, homeowners in and around the capital actually undervalued their property by an average 4.3% between 2012 and 2016.
At the other end of the spectrum, homeowners in the North East of England offered the least accurate property valuations, on average overvaluing their property by an average 19.99% over the same time period.
|Region||Average amount homeowners over/undervalued their property by (2012-2016)|
|Greater London||Undervalued by 4.30%|
|South East England||Overvalued by 5.32%|
|East of England||Overvalued by 6.06%|
|South West England||Overvalued by 9.81%|
|East Midlands||Overvalued by 10.02%|
|West Midlands||Overvalued by 12.71%|
|Yorkshire and the Humber||Overvalued by 14.77%|
|North West England||Overvalued by 16.87%|
|Wales||Overvalued by 19.42%|
|North East England||Overvalued by 19.99%|
Looking at the regional breakdown of figures over the five year period we can see a great deal of optimism from homeowners across the country. In areas where the property market has performed well in recent years; London, the South East and the East of England, that optimism is not too far off the mark. Unfortunately, in areas where the property market has struggled to pick up following the recession; the North East and Wales in particular, property owners appear to be vastly over-optimistic about what their property might be worth.
Why not read more about how your property is being intentionally overvalued or learn more about what adds most value to your home when selling. We buy any house at Quick Move Now so if you want to discuss how we can help give us a call.