AI Valuations – and why they Damage the Twickenham & Teddington Property Market

Whether it’s diary management tools or chat-bots on agency websites, or even tools to assist agents craft compelling property descriptions, AI-based tech has slipped into agency systems and processes, largely (not always) to the benefit of agents, sellers, landlords, buyers and tenants.

But there is a worrying rise in the use of one particular type of AI tool, which could have real impacts on the market – and not for the better. 

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The Rise of AI-Assisted Property Valuations

AI-assisted valuations are apparently becoming standard for many in the estate agency industry. 

We’re by no means technophobes here at Bartlett and Partners – the way we embrace social media to market homes testifies to that – but this is a growing trend that we find concerning for the property market in Twickenham (and beyond), particularly because we suspect that homeowners may be none the wiser. Or worse; they may also think that such ‘valuations’ are gospel themselves.

A recent survey by Alto, part of the ZPG (i.e. the firm behind Zoopla), has revealed that almost 4 in 5 estate agents now “rely heavily” on AI valuation tools. That’s an industry leaning, en-masse, towards using automated systems to price what is usually someone’s most valuable asset.

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How AI Tools Can Get It Wrong

The problem seems so glaringly obvious, but let’s spell it out:

AI tools don’t know your home.

They don’t understand that that garden you have invested so many hours (and fingernails) on is the cherry on top for the family looking for a beautiful outside space with room for their children to safely play. They don’t recognise the appeal of those treated original floorboards, or the functional benefit you have achieved since you opened the Kitchen into the Dining Room. They certainly don’t account for the intangible value of living near a first class local school that wasn’t there two years ago, or the excitement of living near that community-led high street since two new restaurants and a deli opened over the past couple of years.

These tools are built on algorithms and trained on data… but they are blind to nuance.

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Estate Agents Know These Tools Are Flawed – But Still Use Them!

To be fair, AI is not at fault here. These tools – because a tool is what they are – are not claiming to be accurate! 

They claim to be useful assistants, research aids and guides; but it seems that many agents are relying on them like some sort of valuation Almanac, and the consequences are clear when, be it for a homeowner in one direction or a buyer in the other, there are thousands of pounds at stake.

In fact, and remarkably, according to Alto’s survey almost 90% of agents say they believe AI tools are consistently undervaluing homes. And yet, 78% still say they use them as a primary guide for pricing.

It is a contradiction that speaks volumes (and screams: look out!)

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The Local Impact for Property Valuations in Twickenham

Here in Twickenham, we’re seeing the impact of that approach. 

We recognise that there needs to be balance in what we are saying here, because equally we are critical of agents that ‘overvalue’ – usually just to ‘win’ a property instruction. 

But nevertheless, we have seen some properties hit the market locally, recently, that should have commanded so much more in our view, but were brought to market at a price that risked underselling them. Hopefully these agents generated multiple bids and exceeded their lower-than-market value asking prices; but what if they did not? 

When that happens, it can do more than simply knock a few thousand pounds off a seller’s price; it can also distort general buyer perception, devalue a street or a neighbourhood, and damage things for those that follow later. 

It can create a ripple effect across a whole local market.

This is the danger we see if an industry follows an algorithm instead of proceeding with human experience and professional judgment.

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How Bartlett and Partners Estate Agents in Teddington Approach Valuations Differently

At Bartlett and Partners, of course we take a different approach to property price appraisals.

Yes, naturally we make use of technology; it’s a valuable tool to have in the box. 

But we approach our use of it knowing that it’s not the full picture. It is never going to replace experience and professional research. 

When we carry out what the industry typically calls an ‘appraisal’, we treat it very much as a consultation. We don’t just look at your home in detail, we also ask questions – and most important of all, we listen.

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We Look at What AI Can’t See

We look at the things that an artificially intelligent program can’t work out from a postcode combined with an algorithm, and rather than simply hitting a button for a formulaic calculation, we look at the things that are going to inspire emotional responses from buyers:

• What’s the feel of the space? Open or flowing layouts, light spaces and day-to-day functionality of space all affect a potential buyer’s appetite for a property.
• What condition is the home in? Has the property been left to deteriorate without upgrades or even basic maintenance since it was purchased for whatever price was recorded on Land Registry, at whatever moment in time? Or, has it been improved, decorated or modernised compared to other properties being marketed right now?
• Have you invested in the details? Have there been value-adding improvements made that AI Valuation Tools aren’t going to account for? A new kitchen, a bathroom upgrade, maybe even an extra bathroom or an extension? How about a landscaped garden? These can add more than just cosmetic appeal. High-end, classy and modern finishes, thoughtful extensions, or a properly fitted home office – whether that be inside the home or detached in the garden – are all increasingly important to modern buyers.
• What’s happening in the neighbourhood? New developments, improved transport links, good local schools – or indeed new (or relocated!) schools – even the buzz around an emerging high street that has surprised locals… these things all impact value, because they determine where buyers are excited (or otherwise) about spending their money to get into.

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Combining Research With Real Market Insight 

We take these points, some tangible and some intangible, and we consider them in light of what we can determine from professional, thought out research into local sold prices, length of time properties may have languished on the market (and at what price), and of course we look at current market demand – and by that, I mean, crucially, that we apply our knowledge and understanding of what our buyers on our database are actively looking for right now.

And this is all because we’re not a faceless, inhuman brand. We’re a small, hands-on, outfit, dedicated to our local market because we are dedicated to our brand and the values that our brand represents – to us and to the Teddington and Twickenham market.

We know who’s looking. We know what they want. We know how quickly the right home, priced properly, can fly off the market, if it is marketed properly to the right, willing and able purchasers. 

We know how to position homes in a way that connects with real people; we don’t just want to tick boxes on a CRM system and let technology take care of the rest. Real phone calls, real conversations, motivated, credible viewings.

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AI Should Support – Not Replace – Good Local Estate Agents in Twickenham

When it comes to pricing your home, AI tools can give you – or the agent you call out – a ballpark figure. But they won’t catch the little things that spark emotion in a buyer. They won’t call the person met two weeks ago who’s been searching for a home just like yours and missed out twice. And they won’t make sure the photographs, the wording, and the presentation of your home are aligned to maximise its value.

That’s our job, and that’s what great agency requires – and we take it absolutely seriously.

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Don’t Let AI Undersell Your Home

Of course AI is here to stay. And when used properly and wisely, with consideration and oversight, it can be a great support. But relying on it too heavily is like confusing the Sat Nav in your car with the Auto Pilot in a plane. 

Sat Nav doesn’t work that way – it still requires a human being at the wheel to get you there.

If you’re thinking about selling and have had a valuation that just doesn’t sit well with you, AI might just be the culprit. 

Make sure the agent you talk to is backing up their advice with demonstrable research, shows that they have insight and property market instinct, and arrives at your doorstep, kitchen table or sofa radiating their experience; because when it comes down to it, data is interesting, but it is usually a human touch that carries a sale through.

When it comes to your home, you deserve more than just an address-entry followed by the click of a button to determine its value. Those in this industry that resort to it are at genuine risk of losing the essence of what it is to be an estate agent.