"An online tool can tell you what similar properties sold for, but it can't tell you that the house three doors down only achieved its price because of planning permission or that the area is about to benefit from a new school, for example. That context is everything"
- Kevin Shaw - LRG
Despite the growing role of technology and AI in property transactions, new research from LRG shows that human expertise remains central to sellers’ decision-making. The study found that 85% of sellers are more likely to trust a local agent’s valuation than an online platform, a preference the government has acknowledged through planned reforms.
This month, the government announced proposals to introduce mandatory qualifications and a Code of Practice for estate agents. The reforms recognise that buying or selling a home is complex, and that relying on automation alone cannot capture all the factors involved.
LRG’s autumn report, Property Pricing in a Pragmatic Market, surveyed 317 buyers and sellers across England and Wales, highlighting the enduring value of professional insight in a digital age. More than half of sellers (54%) said they chose their agent specifically for valuation expertise. While online platforms provide instant estimates based on algorithms and historical data, the research indicates that sellers place greater trust in experienced local agents when making significant financial decisions.
The influence of this trust is clear in sellers’ behaviour. Three-quarters (74%) of sellers listed their property at the agent’s recommended asking price, with most of the remainder testing slightly higher levels.
“What we're seeing is that sellers understand the difference between an algorithm and genuine local knowledge,” says Kevin Shaw, national sales managing director of LRG. “An online tool can tell you what similar properties sold for, but it can't tell you that the house three doors down only achieved its price because of planning permission or that the area is about to benefit from a new school, for example. That context is everything.”
This reliance on agent guidance is particularly notable during market shifts. After the stamp duty threshold changes in April, 55% of sellers received recommendations to reduce their asking price, and nearly half (44%) followed this guidance, demonstrating the trust placed in professional advice.
The government’s proposed reforms reflect this reality. Mandatory qualifications and a Code of Practice aim to ensure that estate agents have the expertise required to navigate complex transactions, including chain management, local market nuances and strategic timing considerations.
“Every locality tells its own story,” adds Shaw. “Algorithms work with averages and comparisons, but they can't factor in the dozens of variables that experienced local agents consider instinctively – from the best dog-walking routes and which parks the locals use, to transport links, upcoming developments and seasonal patterns specific to that town or neighbourhood.”
LRG’s research also highlights the broader value agents provide beyond initial valuations. In a market where perception shapes reality, professional guidance helps sellers bridge the gap between expectations and buyer sentiment. The study found that 45% of sellers believe prices have fallen in the past year, while only 12% think they have risen, showing the importance of expert interpretation in setting effective pricing strategies.
As the property market continues to change, with interest rate adjustments, policy shifts affecting transaction costs, and the upcoming Budget, the case for local expertise grows. The government’s recognition of professional standards indicates that the future of property transactions is not about choosing between technology and human input, but about combining the two effectively.
“These reforms validate what our clients have been telling us for years,” concludes Shaw. “Property is personal, local and complex. You can't automate that level of service, and you shouldn't try to.
“Despite this, there are undisputed benefits in using digital technology in some aspects of the buying and selling process. This includes customer onboarding, collating material information, online marketing, customer portals and sales progression. These efficiency-saving tools benefit the customer experience and the speed with which homes are sold.”
