Our Value Estimates

Question 1

How do Bricks&Logic create price estimates?

Accepted Answer

Bricks&Logic price estimates are created by analysing all the public data available on a property AND all the properties in it's neighbourhood. We then merge this analysis with data and pricing from our estate agent partners to create the most accurate price estimates possible. Please note that a Bricks&Logic price estimate is an algorithmic estimate based entirely on available data and is not a valuation. A valuation can only be carried out by an RICS surveyor.

Question 2

How accurate are Bricks&Logic price estimates?

Accepted Answer

Bricks&Logic price estimates vary in accuracy based entirely on the amount and quality of data available to make the estimate. In the best cases our average errors are very low at less than 5%, and in the worst cases, the average error rises to just over 8%.

Question 3

Do Bricks&Logic use AI to create price estimates?

Accepted Answer

Bricks&Logic price estimates are produced by our data scientists using a variety of techniques including AI. As the field of AI continues to mature, we expect to use more AI technology around our platform. In our blog: 'ChatGPT and the future of the property market', we look at how ChatGPT functionality has already made an impact in the analysis of messy data.

Question 4

What is the difference between property price and property value?

Accepted Answer

Any one party can set a price for a property, otherwise known as an Asking Price. It takes two parties to agree on a price which is then known as an Agreed Price. However property value could be best described as a property price which MANY people would agree is fair for a particular property. In the UK, property value can only be determined by an RICS accredited surveyor.

Question 5

How much value is added by renovating a house?

Accepted Answer

It stands to reason that improvements to a property, particularly those which cost money should have some effect on the value of the property. The size of effect will depend on many variables including the type of property, the size of the property and the location, or intrinsic value of that property. Like all important factors in property value, Bricks&Logic determine this renovation/value range for each property. Login to www.bricksandlogic.co.uk to change the subjective condition setting and see how property estimates change based on property condition. We have also looked at which types of improvements add the most and least value to a home. In our blog: 'Energy performance improvements which add the most value', and 'How much value is added to your home when making it more energy efficient', we examined millions of repeat EPC surveys and compared the changes in the survey across time to sale prices subsequently achieved. Certain improvements to homes clearly stood out as drivers of higher value compared to others.

Question 6

How do I value my property using Bricks&Logic ?

Accepted Answer

Bricks&Logic do not provide a property valuation. This can only be provided by a RICS surveyor. However, based on the data available, or provided by you, we can create a value estimate for both the sales and rental markets, both currently and historically. Once logged in at www.bricksandlogic.co.uk, you can update property attributes and condition which in turn updates the value estimates.

Question 7

What is a property index?

Accepted Answer

House price indices are statistical measures that track changes in the price of residential properties over time. They are used to provide insight into the overall direction of the housing market, and are often used as a tool for forecasting future trends. In our blog: 'A New Approach to House Price Indices', we discuss our unique approach to house price indices using a comprehensive understanding of each property's characteristics and location and how influential they are in the our overall approach to understanding property value.

Question 8

What is comparable analysis?

Accepted Answer

Comparable Analysis is the method normally used to assess the likely value of a property. Similar properties which have sold recently for a known price are compared to the target property and this known price is adjusted for the differences between the properties and the market changes since that sale date. The result is a price for the target property implied by the sale of that comparable. This process would ideally be performed a number of times to create a number of implied prices and from these a comparable valuation can be produced.

Question 9

What is a price benchmark

Accepted Answer

A Price Benchmark is a useful tool to understand likely average pricing in markets which are less than liquid. For example, shares of large listed companies trade millions of times per day and therefore no price benchmark is needed. However, for less liquid assets such as some commodities, property and other high value items, benchmarks are vital to quickly understand the likely value and compare against other assets. In our blog: 'Property pricing & the value of a benchmark', we expand on the concept of a benchmark and it's value in property analysis.