Frequently asked questions
You can find answers to many of the questions we've received about Liqquid and our products.
Please get in touch with us if there is anything else you would like to know.
How do you value properties?
We use a blend of traditional valuations methods and artificial intelligence to reproduce the way that buyers, sellers, agents, surveyors and lenders think when evaluating a potential transaction. Traditional methods include looking at comparable properties locally that are for sale or have been sold recently, including pricing per square metre. We use artificial intelligence to improve accuracy where there is only limited data available, and to add weightings to valuations based on the relevance of comparable properties.
What are the main differences between your valuations and those carried out by estate agents?
We offer two types of online valuation estimates: instant and refined. Instant valuations rely on publicly-available data and are less accurate, while refined valuations rely on information provided by someone that is familiar with the property in question, and can be more reliable. Estate agent valuations involve a visit to the property and benefit from knowledge gained by the valuer from tracking and handling local sales comparable to the property. However, many estate agents support their valuation appraisals with online valuations and computer-generated reports which use similar methods to Liqquid and incorporate significant amounts of comparable transaction data. Properties which have unique or unusual characteristics are more difficult for online valuation models to evaluate and this is where estate agents can offer useful subjective advice that can make a difference.
Why do you publish average and good condition valuation estimates?
Most online valuation estimates generate a range and a mid-point value which might not reflect the actual condition of the property. Valuations are usually based on the average price of comparable properties, some of which might have been refurbished prior to going on the market, while others may need some work. Liqquid's average condition valuations help people envisage what a property might be worth if it hasn't been recently renovated, while good condition valuations assume that the property has had a new kitchen and / or bathroom installed and some internal redecoration.
How accurate are your valuations?
We believe that our valuations in most cases will be within 5%-10% of the likely sale price of a given property, and we target a narrower range of 2%-5% where we have more information available. In the weeks and months following launch in mid-2023, our model will be recalibrated frequently as we get more feedback from customers and increase the number and quality of the algorithms we use, as well as the quantity of data. Ultimately, a property is worth what someone wishes (and is able) to pay for it at any given time. We recommend that people using our valuation service also speak to a local estate agent who can take a view on the condition of the property and will have a sense of buyer appetite for the property characteristics and location.
How do improvements affect the value of properties?
Certain improvements, such as adding a new kitchen or bathroom or redecorating internally, can often increase the value of a property by more than their cost. There is a limit to the increase in value, however, given that buyers with a specific budget are unlikely to pay considerably more than the most expensive local property in the area. Liqquid's valuation model takes into consideration maximum local sale prices when estimating the value of improvements. It can also often be the case that the cost of improvements won't be recovered at the time of sale, but will help increase the likelihood or speed of a sale.
What's the difference between a list and a portfolio?
Lists are named groups of properties added to a watchlist by clicking on a save icon. Portfolios are similar to lists but also add the valuations of the properties and a total for the whole portfolio, which can be useful for investors and landlords.