Property owners underestimate their homes by a total of £ 236.8 billion, according to a study.
Analysis through online real estate portal ZooplaNearly half of UK homeowners (45%) who had their home valued through a real estate agent or sold in the past three years said it was worth more than they thought it was worth at an average of £ 46,305.
In contrast, only a quarter said their home was worth less than expected, averaging £ 44,313.
When all the survey results are taken into account, the net result is that the average UK home is worth £ 9,470 more than the owner realizes. Multiplied by the UK’s 25 million private homes, this means UK homeowners are sitting on an incredible £ 237 billion in hidden equity.
For many homeowners, the discrepancy between a real estate agent’s perceived value and actual valuation was far greater. Nine percent of homeowners whose property was worth more than expected found it was worth more than £ 100,000 more.
This equates to more than a million properties with six-figure hidden equity nationwide.
For those who sold their home and benefited from their hidden equity, the unexpected slump had a significant impact. 81 percent said the extra money “improves their lifestyle”.
Homeowners can check my home on Zoopla.co.ukHere you can determine the value of your home with an instant online appraisal based on powerful market data. You can also track their home price estimate and access a timeline of their home’s sales history.
My Home also allows homeowners to track the appraised value of other homes in their neighborhood, as well as any homes they may want to buy in the future. Zoopla encourages homeowners to get real estate agent reviews of their home – the most accurate method of valuing a property – to see if they are sitting on more equity than they think they are.
Gráinne Gilmore, Research Director at Zoopla, said, “Property prices have long been a hot topic and this new survey shows that many homeowners can get a nice surprise when they review the current value of their home.
“The effects of the pandemic were felt in the housing market and many households were considering how and where to live.
“There is increasing demand for buyers, but this is not currently being achieved by property for sale. Homeowners considering moving could and could be pole position in their local market when they put their property up for sale Unlock hidden equity. “”