Automated property valuation websites are increasingly promoted nowadays. As a real estate buyer or seller, you may end up using these websites. Avoid relying on the prices quoted without knowing first how the figures are calculated.
How Automated Property Values are Computed
Automated property valuation websites normally access information from public sources. This includes basic information such as square footage, number of rooms, and home age. This is entered into a database and compared to features of recently sold homes.
What Is Available in Public Information
Public information is not typically reliable. Most of the time the data may be outdated. It may not include any home renovations. It also commonly leaves out information that may change the market value of a home, such as the quality of hardware and appliances.
Accuracy of Automated Property Valuation Websites
Because public data is not complete, it will naturally be inaccurate. Most online tools disclose a margin of error in the fine print. Keep in mind, those margins may be significantly more in certain markets.
Dangers of Relying on Automated Property Valuation Websites
As a property seller or buyer, completely depending on automated property valuation websites might be a big mistake. When selling, you may inaccurately price your property and waste valuable time. As a buyer, you could upset a seller and lose out on the property of your dreams by coming in too low on price. An accurate price range involves an experienced professional reviewing detailed property details from multiple sources and comparing it to comparable properties that recently closed. This is where your real estate agent is important. When marketing real estate to sell, he/she can compile a report that justifies a particular price range. As a buyer, your agent can help you identify a price that positions you for the best chance of success, particularly when there are additional offers. Keep the MA automated property valuation websites accuracy in this article in mind when browsing on the Internet and contact a local real estate professional for sound advice.