Electronic property valuation estimates are increasingly common nowadays. As a home buyer or home seller, you might end up comparing the results to the listing price of a house. Avoid depending on such estimates without first knowing how the figures are calculated.
How Electronic Property Prices are Computed
Electronic property valuation estimates often use facts from public sources. This includes facts such as square footage, number of rooms, and land. This is entered into a database and compared to recent sales.
What Is Available in Public Information
Publicly available data is not typically current. Often, the data can be really old. It might not include recent improvements. Also, it does not detail features that can influence house values, such as the condition of the property.
Reliability of Electronic Property Valuation Estimates
Given that public data is not detailed enough, it will never be truly exact. Most online tools disclose a margin of error somewhere. However, those margins can be significantly more in local markets.
Dangers of Using Electronic Property Valuation Estimates
As a property buyer or seller, strictly relying on electronic property valuation estimates could be a huge mistake. When selling real estate, you might incorrectly price your home and waste essential marketing time. As a buyer, you might alienate a seller and miss out on your dream home by pricing too low. A proper price range requires a knowledgeable professional reviewing comprehensive information from more than one source and comparing a home to similar sold properties. This is where your real estate agent plays a key role. When pricing a property to sell quickly, he/she can prepare a report that justifies a specific price point. As a home buyer, your agent may advise you on a price that positions you for the best opportunity for success, particularly in multiple offer situations. Remember the reliability of electronic property valuation estimates in MA noted above when browsing online and contact a local real estate broker for sound advice.