A new AI tool can tell you how much your house is actually worth as new research reveals that average online valuations are off by 13%.
18% of online valuations were overestimated, 7% were underestimated and a quarter of prices were out by more than 10%, according to a new study.
House price valuations are off by an average of £70,000 in London and £38,000 across the rest of the UK, the research has reported.
Nearly 1 in 7 of us are seeing our properties overvalued or undervalued by 20% or an average of £56,000, according to the property platform Homemove.
AI tool 'Homer' launches to help calculate the value of your house
It comes as Homemove launches a "groundbreaking" valuation tool called "Homer" to harness the power of visual AI.
Using more than 20 data points, the tool visually analyses key property features based on uploaded images.
Homer analyses everything from untidy rooms and outdated interiors to clutter and structural damage.
It harnesses data from last sold prices to extensions and energy ratings to help sellers tackle the increasingly difficult-to-navigate housing market as well as understand how they can attract more buyers.
James Freestone COO and Co-Founder of Homemove said: “Homer’s AI technology aims to enhance the valuable work of estate agents, by providing preliminary assessments and then connecting customers with professionals to guide them through the process.
"Visual inspections remain vital in real estate, revealing clues that shape property value. With Homer, this takes these insights to a new level, analysing visual features in photographs to make even more accurate predictions.”
When looking at property images, the Homer AI tool takes the following into consideration:
1. Poor Maintenance
Overgrown landscaping, chipped or peeling paint, broken windows, rusted gutters, and visible mould/mildew can be indications of neglect. These visual clues might suggest to potential buyers that the house may have other, unseen issues due to lack of care.
2. Outdated Interiors
Dated wallpaper, old cabinetry, ancient appliances, worn-out carpets, and outdated bathroom fixtures can all make a home appear out of touch with current market preferences. Homes with updated interiors often get higher prices.
3. Clutter and Messiness
While this is more about presentation than the house itself, photographs that show cluttered, messy rooms can make spaces appear smaller and less appealing. A clean, well-staged home is more attractive to potential buyers and can affect the perceived value.
For people looking to sell their property, these insights could speed up the selling process since it allows the sellers to stage or modify their homes to appeal to the widest range of potential buyers.
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