Automated property valuation tools are heavily marketed. As a home buyer or home seller, you may find yourself relying on the estimates for your real estate decisions. It is extremely critical that you fully understand how they work before relying on them for a home sale or purchase.
How Automated Property Prices are Determined
Automated property valuation tools normally reference real estate details from public records. This includes facts such as finished space, bedrooms, and land. Data is entered into a database and compared to that of recently sold properties.
Accuracy of Public Information
Publicly available information is not often precise. Commonly, the information can be out-of-date. It may fail to note changes to the property. Also, it does not list items that may affect home values, such as the quality of workmanship.
Accuracy of Automated Property Valuation Tools
Because the data used by automated property valuation tools is limited, it can not be fully exact. Most websites disclose a range for the margin of error in the fine print. Keep in mind, the resulting difference can be much more in your market.
Why You Should Not Depend on Automated Property Valuation Tools
As a home buyer or seller, it will be dangerous to exclusively refer to automated property valuation tools. When listing real estate, you could end up overpricing and waste critical marketing time. As a buyer, you may offend a seller and lose out on your dream home by submitting a price that is too low. An accurate price range involves an actual person reviewing detailed information from multiple sources and comparing it to recently sold homes with comparable features. This is where your real estate professional is important. When marketing a property to sell quickly, he/she can compile an analysis that justifies a particular price point. On the buying side, your agent may advise you on a fair price that gives you the best chance of success, especially in multiple offer situations. Keep the Southern NH automated property valuation tools accuracy above in mind when browsing online and contact a local real estate agent for the most accurate information.