Have you been scouring the internet or gazing wistfully at the properties in the windows of local estate agents but thinking you can’t afford your dream home? Following research by Zoopla, we might have some very good news for you – you might well be able to raise your ‘Maximum Price Range’ a little higher than you thought if your home, like thousands of others has hidden equity.
What Is Hidden Equity?
Hidden equity, simply put, is the disparity between what a homeowner believes their property to be worth to its actual value, revealing a hidden amount of equity to use when purchasing a different property.
Research data from a recent Hidden Equity Survey by Zoopla shows that 45% of homeowners have undervalued their home on average by £46,300, which could make all the difference between affording an extra bedroom you need, giving you more leeway when seriously considering a new home, rather than having to decide on where to make compromises.
Further data showed that almost one in ten homeowners who had undervalued their home had a very nice surprise indeed – their home was worth £100,000 more than they had estimated. Maybe this could put your desire to move to the city or the country or to take retirement earlier than planned within reach?
Why Are So Many Homeowners Unaware Of The True Value Of Their Property?
The average homeowner is likely unaware of the current local property prices and therefore the potential value of their home. Why are so many people undervaluing in this way? The challenges faced by the property market in the early days of the Coronavirus pandemic, with viewings cancelled and already progressing sales seeing many delays, fears grew that the impact would be a fall in house prices. As we have begun to emerge from the necessary restrictions imposed during the pandemic and continue life as we knew it before, the property market has seen a soaring increase in prices, which many people have possibly not caught up with yet.
Zoopla reported just last month that the average price of a property in the UK is now 30% more than at the previous peak of the property market back in December 2007 and not showing any sign of stopping, with demand continuing to outstrip supply. With this in mind, now could be the time to make those much-pondered changes to your home life and consider selling your home.
Find Out If Your Home Has Hidden Equity
If reading this article has made you curious as to the true value of your property, why not use our online valuation tool to find out how much your home is worth – you might be pleasantly surprised!. Once you have used the tool, why not reach out and ask for a more detailed valuation with us? With over 20 years in the business, we have a wealth of local property knowledge and the experience needed to support you on your property journey. We have over 30 local offices, so we are sure to have an office near to you. You can find details of your local office here .