Don’t rely on estate agents to set prices, public urged

The public has been advised not to leave it to estate agents to value their homes, but to do their own research.

The advice comes from the Home Owners Alliance.

It publishes two ‘House Price Watch’ guides aimed at helping people find out how much their homes are worth in their areas.

However, both guides look incredibly complicated and contain inherently contradictory advice.

The first guide quotes the Land Registry, LSL, Nationwide, Halifax, Rightmove and Hometrack, and shows a bewildering range of prices moving up 1.7% and falling 2.9%.

The second guide simply averages five indices – Land Registry, LSL, Nationwide, Halifax and Hometrack, but with the notable omissions of the RICS and ONS.

We’re not quite sure what economists would make of simply averaging five completely different indices – some of which quote prices while others don’t, some of which are seasonally adjusted and others not, and which also cover different time frames, since the Land Registry data relates to prices agreed months ago, while Nationwide and Halifax relate to more up-to-date prices but only on the basis of mortgage approvals.

Still, who are we to judge?

The public might find it useful. Personally, we’d rather ask an estate agent.

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10 Comments

  1. Jonnie

    Just had a look at their website, nice little 'society' some good advice for the naive consumer but sadly a blatant tie up with myhomemove / PPL which takes the shine off the wholesome / helpful thing it probably wants to be and sort of kicks the spirit any sort of impartial independent advice firmly in the knackers, shame. – oh, and they're wrong, if you're a member of the public reading this ask your local estate agents what your house is worth, you will find several on your high street, some will be dreadful but most will be excellent and very helpful. Jonnie

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  2. surreyagent

    err hang on. I value a house and give my expert advice and the vendor often decides they want to ask a higher price anyway so there is a certain amount of truth to this report! counting down the days to retirement……..

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  3. Gman

    I use Nethouseprices myself, great set of valuation tools and sold prices. Looking forward to the automated valuation model in their Nethouse Professional offering later this year.

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  4. wilko

    What sort of person wakes up one morning and thinks "I know, I'll form, or join the home owners alliance"??? For goodness sake! All I can think is perhaps their local Amateur Dramatic Group isn't up to their standards so they need something else to massage their ego. Incredible.

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  5. Ric

    I think the Home owners should also be allowed to do the survey report and decide on the amount the bank will lend them………… oh and the electrical work and plumbing whether they are qualified or not……..so much more fun.

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  6. 1stTimeBuyer

    You can also use Zooplas home-values section as a guide… e.g. http://www.zoopla.co.uk/home-values/london/

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    1. Ric

      Afternoon FTB…….Not so sure many Homeowners would be keen to set the price based on Zoopla………..I get buyers may well be……! Which I assume is why you are posting under the name "1stTimeBuyer" on here and not called "HomeOwnerlookingforthebestprice"

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    2. Robert May

      The comparables model of valuation on which the Zoopla algorithms are based is the simple, fall back , rule of thumb , guestimation check that is used by valuers to make sure their informed and slightly more scientific methods of valuation are aligned. That does not make comparable plus a bit or less a bit a reliable means to assess value.
      The Cobbling together an average of 3 individual indices to provide a valuation is simply daft; land registry data is historic achieved data, the portals provide asking price data( plus the Zoopla random number generator figures) and Hometrack provide a detailed fact and figures based opinion but not one of them is a valuation that can be applied to an individual property. Averages can only be applied to the same entity. You can have an average size Orange but you can’t compare an Orange, a Tangerine and a Kumquat and come up with anything more than they are Orange colour, citrus fruit.

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  7. Jonnie

    @1sttimebuyer – good for you son, carry on. Go and tell the owner of the house you want to buy that you've taken 4 minutes from your life to have a look on Zoopla and that's what you're basing your offer on. Let us know how you get on and more importantly please tell us when you've moved in and made the place your home – Jonnie

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  8. Taff

    When will people realise a computer can't "value" a property – there are just too many variables, most of which aren't recoredd. Sure, it can give you a figure, but a figure is not the same thing as a valuation. If you don't believe me, pick 3 properties you have SOLD in the last few weeks and ask an online valuation tool to value them now. Unless you're using standard sized terraced house in a row of other identical standard sized terraced houses, I am happy to bet that the "valuation" will be nothing like what you've just achieved. And if that isn't enough of a reason why we shouldn't rely on computer generated valuations – ask yourself if you can sue Nethouseprices etc if their valuation is wrong. Of course you can't.

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