Zoopla has launched a new tool which is aimed at driving valuation leads directly to agents.
However, the valuations themselves – by Zoopla’s property data brand Hometrack – have come under fire from consumers.
Zoopla’s new valuation service was launched last month, when the algorithm powering the model was updated.
As from now, agents can use an online widget which can be integrated directly into their own website.
The tool is designed to capture key contact information from potential sellers and landlords as leads, before providing a free estimated sales and valuation range for their property.
After the seller or landlord fills out an online form, the lead is automatically delivered to an agent’s CRM system or mailbox.
Zoopla says that by providing a price range for sale or rent, the seller or landlord is encouraged to contact the agent directly for an accurate valuation, based on the agent’s in-depth knowledge of their local market.
However, the accuracy of the new online valuation service has been repeatedly criticised by reviewers on Trustpilot.
Some have complained that hundreds of thousands of pounds have been wiped off the value of their home overnight.
One reviewer this week posted under the headline ‘Zoopla new model may hurt you financially’: “Like many on here, I have the same experience of the appalling ‘new algorithm’ which has wiped off a considerable value from the estimated value of my property.”
Another this week wrote that the Zoopla valuation was “ridiculous”, adding that a few months before Christmas an estate agent valued it at £380,000 and Zoopla at between £390,000 and £410,000. The Zoopla valuation had now changed to £253,000.
Another says: “Advertising Standards Agency have washed their hands of Zoopla saying that the phrase at the end of their adverts ‘We know what a home is really worth’ is nothing to do with the new Hometrackk valuation system . . . total rubbish, people check this site for approximate valuations of properties in set areas which are grossly misleading.”
One reviewer, Paul Curtis, said that Zoopla had revised the value of his property from £1,021,000 to £525,000 – a drop of 49% – in the space of 24 hours.
He said: “Did a war break out I wasn’t aware of? From now on I’m going to ask my three-year great nephew what he thinks it’s worth – it will probably be closer.”
Another post from ‘Neil’ read: “Absolutely crazy! Zoopla had our home showing at £379,000 in December but now it’s £196,000.”
EYE asked Zoopla about the consumer complaints, and a spokesperson said: “We’ve improved the model we use to provide house price estimates, increasing its accuracy and ensuring more properties are covered than ever before.
“While we are confident that the majority of customers and agents will respond positively to these changes, we recognise a small number of customers are disappointed by their new estimate.
“We’d urge customers who are disappointed to contact us so we can look into their estimate in more detail.
“If customers wish us to remove their estimate we are happy to do so while we resolve their query.
“It’s important to remember that the value given is just an estimate, and for a detailed, no strings attached house price valuation using the latest local knowledge we’d always recommend homeowners contact a Zoopla estate agent who will be happy to help.
“The Zoopla valuation tool provides the prospective seller/landlord with an instant house price estimate range and positions the agent as the expert to provide an accurate valuation.”
Agents wanting to find out more about the new valuations tool should visit:
https://advantage.zpg.co.uk/product/zoopla-valuation-tool/
https://uk.trustpilot.com/review/www.zoopla.co.uk
Comments (15)
I’m pretty sure that Zoopla inform customers that they need to get the estimated property value checked by local estate agents.
I’ve had an upsurge in Zoopla valuation leads and converted a good percentage to instructions.
The article seems a little one sided to me. Carry on with the good work Zoopla!
“I’m pretty sure that Zoopla inform customers that they need to get the estimated property value checked by local estate agents.”
And a percentage of those Agents will simply go with the RNG figure – or worse still, embellish it further skyward in the knowledge they won’t be the only ones doing it…
True peebee, but it isn’t Zoopla’s fault that there a lot of sh!te agents out there.
“…but it isn’t Zoopla’s fault that there a lot of sh!te agents out there.”
Also true, NAd32. However Zoopla and the rest of these RNG “House Price Estimate” providers are facilitating the sh!te Agents to trade with the information they spew out – woefully incorrect though it be.
Duty of care and skill, a legal precedent, and redress schemes codes of conduct mean any comparables based valuation system should be treated with extreme caution, especially in an uncertain market.
At their very very best AVM’s are a guess based on completions that are 2 or 3 months old for sales that were agreed 3 or 4 months before that on properties that were listed 2 or 3 months before that and valued before that. At a minimum the comparable is 6 months old but often 9 or 12 months. That valuation lag means anything could have happened to the variables that affect house prices.
If an AVM gives an unrealistic expectation to vendors that’s reinforced by an eager ‘list at all costs’ agent who has no real concept of why its important to take on saleable instructions or by a passive intermediary lister who isn’t concerned with completions, the agent’s duty of care and skill is broken. In a falling market that can get expensive; the agent is liable for the principal’s loss. If a property is over-valued and follows the market down, the agent is liable for the initial bad advice on value.
As the portal dishing out this duff advice don’t have culpability for the random numbers they generate its the agent who has to be wary.
Estate Agents value homes.
Computers don’t.
Unless there is an Agent called Al Go Rithm?
Local agents are specialists ‘locally’, simply because they know the area better.
But these same agents also value homes differently to each other, and often different to what they end up selling for. It’s an estimated value, however you look at it. Naturally any algorithm will have it’s issues, as is based on information. Google Search has issues.
When we bought Ewemove we learnt a thing or two about online valuation tools as lead generators. The first thing is that the tool must produce a reasonably accurate result if you are to have any credibility. Secondly, if you jump on the lead straight away and ask for the instruction then you just going to irritate, most people who use these tools are not tyre kickers but neither are they ready to instruct an agent. They are in “research” mode. Researching both the value of their home which feeds through into their “cost to change” calculation, and drawing up a list of credible agents. Until your solution can deal with both of these aspects, which will involve a high quality desktop valuation tool and a customer relationship management tool integrated into your website, I’d keep knocking on doors.
Nothing changes!
Zoopla are and so are we agents wrong only because it’s lower than the seller “knows” what the price is, unless of course some out of area cowboy turns up and tells them more, then they are only too happy to listen, agree and then tell the next local agent that turns up that he doesn’t know what he’s talking about as it’s WAY low!!
no matter what pertinent local proof you hand over of sold homes even if it’s three doors away because theirs is always bigger, better and newer!!
What is exaggerating the issue is that the first algorithm that Zoopla used grossly over valued the homeowners property. This new algorithm is correcting that error , and the homeowner doesn’t want to acknowledge the perceived drop. They don’t want to acknowledge that the first figure quoted was wildly inaccurate, and that no actual loss exists. Supply and demand determines the true worth of a property. The very best agents obtain the very best prices by increasing demand.
HM land registry data was wrong, it had over 200,000 errors and duplications which went un-noticed by the AVM compilers
The errors were identified to HMRC by the rummage4 team, ONS had to re-adjust the HPI and land registry have been a few years cleaning out the errors. They are down to the last 19,000
The galling thing is HMLR told the trade press “we didn’t understand the data” and have never corrected or acknowledged we did!
Amazes me people think an algorithm will correctly value their home. Some people just want to live their life through a computer.
Take a hint Zoopla, drop this useLESS tool.
Just because you’ve developed a “thing” it doesn’t mean it’s wanted, useful etc.
You’re messing about with the value of people’s homes ……STOP Zoopla!!!
I know if I was a Homeowner affected by this “Zoopla Tool”, whereby potential buyers were misled on the value of my home, I would be straight onto my lawyer seeking legal action/damages from Zoopla.
Zoopla has suddenly this year stopped valuing just about every property of family members I search when it always used to do so. It must be related to the new tool. I was glad I managed to get it to make my house much less valuable a year or 2 ago (i was worried about the mansion tax of Labour) and one big house on our road sold at over £2m – every other is well under and yet zioopla kept implying they were all going to be worth over £2m because of that one massive unusual house on the road.
Now it has removed the lower valuation I had wanted and just won’t give a price which I suppose i okay.