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Homer analyses everything from untidy rooms and outdated interiors to clutter and structural damage.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 Outdated Interiors
Dated wallpaper, old cabinetry, ancient appliances, worn-out carpets, and outdated bathroom fixtures can all make a home appear out of touch with current market preferences.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.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here