Valuing properties is always difficult, but we have years of experience valuing and buying property, and we're very thorough.
Because we sell most properties shortly after buying them, we get to put our valuations to the test.
Our business relies on the accuracy of our valuations
Our success (or failure) as a business relies entirely on the accuracy of our valuations.
- If we value too high and overspend on a property then the company won't make a profit
- If we value too low then very few customers will want to accept our offer, and we won't be able to cover our overheads
So we've had to develop our process to produce highly accurate valuations.
Don't all property companies have value properties accurately?
It's surprising, but not really. Valuation accuracy doesn't really matter to other companies in the property industry as much as it does to us. For example:
- Estate agents aren't affected if they get their valuation wrong (their seller is)
- Property investors hold for the long-term, so their valuation work is never tested
- Mortgage lenders survey all the properties they lend on, but are only affected if a property is repossessed (which is very rare. And even then, the homeowner loses the money they put into the property before a lender does, so the lender has even more padding)
An accurate, robust valuation process
So we're in quite a unique position where we've actually had to develop an extremely accurate and robust way of valuing all different types of homes all over the country.
Our track record is very good, too.
On average, we end up selling properties within 1% of our valuation. (The exact figure as of 2019 was 99.6% accuracy. To get slightly technical, this is the mean average accuracy of our valuation).
This does vary quite widely on a case-by-case basis though.
What does this variance mean?
It means two main things.
For one, it means that although we produce really accurate valuations we can be off sometimes. So if you think we've missed something when we valued your home, then let us know. If there's something we've missed we may be able to increase our offer.
It also means that if we value your home and you're not happy with the conclusion we've reached, don't be too disheartened... You may still be able to achieve more.
There are 3 main steps:
- First we gather information from you about your home.
- Next we complete thorough online research using sophisticated valuation tools.
- Finally, we instruct two local estate agents to visit your home and give their feedback.
Once we have all the feedback we can make our offer. This usually all takes place within as little as a couple of days.
Once we've gathered all this information we spend time assessing it to establish our valuation. We can then determine our offer.