Accuracy of Automated Home Valuations
MA Electronic Home Valuation Estimates Reliability
Electronic home valuation estimates are becoming more popular these days. As a real estate buyer or seller, you may find yourself relying on the estimates for your real estate decisions. Do not depend the values generated without knowing first how the figures are calculated.
The Process of Computing Electronic Home Values
Electronic home valuation estimates normally extract home information from public sources. This includes property characteristics such as square footage, number of rooms, and construction type. Data is entered into a database and used in particular formulas to compute the value of a property.
What Is Available in Public Records
Publicly available information is not usually accurate. In many cases, the information has not been checked for many years. It may not include renovations to the house. It also commonly excludes details that could directly affect home values, such as the quality of hardware and appliances.
Reliability of Electronic Home Valuation Estimates
Given that the information referenced by electronic home valuation estimates is incomplete, it will of course be inaccurate. Most online tools disclose an average error margin somewhere. However, the realized error can be significantly higher locally.
Dangers of Relying on Electronic Home Valuation Estimates
As a home seller or buyer, it can be a mistake to completely rely on electronic home valuation estimates. When going to sell a property, you could inaccurately price your home and waste critical time. As a home buyer, you might upset a seller and miss out on your dream home by coming in too low on price. An accurate price range involves a knowledgeable professional evaluating comprehensive property details from multiple sources and comparing a home to sold properties with comparable features. This is where your real estate agent is important. When pricing a home to sell, he/she can compile an analysis that justifies a certain price range. As a buyer, your agent may advise you on an offer price that positions you for the best chance of success, especially in multiple offer situations. Remember the MA electronic home valuation estimates reliability noted above as you are searching online and consult with a local real estate broker for sound advice.
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