Most people have a rough estimate in their head of how much they could sell their home for if they ever decided to move – but how accurate is it?
In a survey1, nearly half (45%) of homeowners undervalued their property by £46,305 on average, while 25% overestimated by an average of £44,313, with under a third getting it right.
Know your (home’s) worth
Taken together, the responses showed that homeowners are undervaluing their properties by £9,470 each, or £237bn collectively.
Knowing your home’s worth could actually have a significant impact on your life. Eighty-one percent of the respondents who went on to sell their home after the survey said their unexpected windfall had enabled them to improve their lifestyle.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.