Zoopla property listing with low confidence level – image courtesy of Zoopla
When you are checking your estimated property valuation on Zoopla, you may be presented with “Low Confidence” vs “High Confidence“, but what does low confidence mean on Zoopla and what does high confidence mean on Zoopla? But you may also wonder what it means if an estimated price on Zoopla has no confidence level too.
Zoopla confidence levels range from low confidence, which means they don’t have enough data on the property to be confident about the estimated price vs their high confidence level, which means they do have enough data on the property to be confident about the estimated price.
Zoopla estimates are rated by confidence level and if the property you are viewing shows ‘Low confidence’ this means they don’t have enough data to be certain of their estimated price calculation. Which means for properties marked low confidence, Zoopla are not confident with the estimated price.
You’ll notice the estimate price range on Zoopla in the above image is from £336,000 to £504,000.
Zoopla claims that this is similar to receiving different valuations from estate agents. But I’d be worried if I received such a wide valuation range from two or three different estate agents. I would expect on a property worth around £400,000 to have a valuation range of up to £10-15,000, but not as much as £168,000.
£168,000 difference between the low price and the high price represents 50% of the low price, which is a huge percentage.
Zoopla say that when less data is available they show a broader price range, which in this case ties in with the fact that this estimate price is shown with “Low Confidence“.
Zoopla go on to say that when they have more data, the price range is narrower. So let’s take a look at a property that Zoopla show the estimate price as “High Confidence“.
Zoopla property listing with high confidence level – image courtesy of Zoopla
In the above Zoopla property listing image you’ll notice the estimate price range is from £338,000 to £374,000, which is arguably a narrower range, but still a difference of £36,000. This property is shown as “High Confidence”, which is why the narrower price range.
But I’d still be worried on a property worth circa £350,000 if two estate agents gave valuations that were different by such a large amount.
For example, the difference as a percentage on the lower valuation is 10.7% of the low price. If these two prices were from two estate agents, I’d certainly get a third valuation.
What does high confidence mean on Zoopla?
Zoopla estimates are rated by confidence level and if the property you are viewing shows ‘high confidence’ this means they have enough data to be certain of their estimated price calculation. Which means for properties marked high confidence, Zoopla are confident with the estimated price.
Zoopla property listing with no confidence level – image courtesy of Zoopla
What does no confidence level mean on Zoopla?
Zoopla estimates are rated by confidence level and if the property you are viewing on Zoopla shows no confidence level, this means they don’t have enough data on the property to have a high confidence level, but Zoopla has enough data so it’s not shown as low confidence.
You notice the price range of this Zoopla listing is from £223,000 to £273,000, which is a range of £50,000. This is a wide range, and represents 22.4% of the low price.
Low confidence level: Estimate price is based on limited data and will have a broader price range between the low price and the high price.
No confidence level: Estimate price is based on more data than a property with low confidence, but the data is less than is required to be high confidence. The price range will be broader than properties with high confidence, but narrower than low confidence properties.
High confidence level: Estimate price is based on a good set of data and Zoopla will have a narrower price range between the low price and the high price.
Final thoughts on Zoopla confidence levels between low vs high confidence
You need to be careful with Zoopla valuations, as even when the estimate price is shown as high confidence, there’s no real accuracy with their estimated prices.
But before you begin to place any reliance on Zoopla estimates, I recommend you read: How Accurate Are Zoopla Estimates. In this article I include two of my properties, one of which I’ve recently had valued to have it remortgaged, and the Zoopla estimated price is wrong by over 30%.
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Zoopla Confidence Levels: Low Confidence To High Confidence
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Article written by Russell Bowyer who has been investing in property since purchasing his first commercial property in the 1990's for his own Chartered Accountancy business. But his first property investment project was to turn an old dilapidated restaurant into a large 5-bed home, which he purchased for £117,500 and sold for £450,000 (to see an "after" photo of the house before it was sold see here: About). Russell owns a number of investment properties, which includes houses, flats and HMO's. More recently he has turned his creative side to investing in property using lease options. His largest lease option deal to date was to acquire 12 properties worth over £2 million for just £12, which means he paid just £1 to acquire each property!
