Online Property Valuation
What is an online property valuation ?
An Online Property Valuation is a ‘market approach’ valuation based on criteria that does not include an on site inspection of your property.
Often, an online property valuation is simply an introduction to your local real estate agent.
It’s a way to let them know you are interested without needing to meet face-to-face, especially if you are not sure if you are in the market just yet.
An accurate valuation relies heavily on your valuer’s/agent’s experience in your area, which is why it is not advisable to use an online property valuation for anything more than an interesting way to begin your research.
However, the difference between an online valuation that is free and one that you pay for can be substantial.
The amount of research the business offering the online valuation has put into the amount of reseach they do, will determine how useful it is for example how often they refresh their research and how many of the really vital questions they ask you.
To Find A Good Real Estate Agent in Your Area to Help With Your Property Valuation Click Here
What to expect from an Online Property Valuation
An Online Property Valuation is an ‘estimate’ made to determine the value of your property based solely on the sale price of like properties in your area.
This is what is called ‘the Market Approach’.
An Online Property Valuation asks basic questions and generates an email report back in a matter of minutes.
The fact that it is free and takes so little time to put together is an indication of the very general nature of most online property valuations.
Another indication of the value of an online valuation can be found in the criteria used to calculate it. You can expect to have to answer questions much like the following:
- Name and contact details
- Address
- Number of bedrooms & bathrooms
- Condition (poor, average, good)
- Size in sq metres
- Parking
- Features (pool, balcony, views, security etc)
- Status (whether you are an owner, tenant etc)
An online property valuation is not designed to be fully accurate because is cannot use the human knowledge gained by an experienced agent about your specific area; it cannot take into account the special features like the craftsmanship on a staircase or handrail; and there is no research into how close the property is to amenities or whether there are council restrictions on the property, etc.
Also, the freshness of ‘comparable sales’ is often not disclosed may in a computer generated report.
However, even if the report states that is relies on the price of sold properties over 6 – 12 months, if there have been subtle changes in the market during this time, or you are coming to the end of the 12 month period, this valuation is going to be even less accurate.
Why would I purchase an online property valuation?
What a report of this kind might be able to give is a run down of the sale value of a number of properties in your area, which may even include the latest auction results.
As always do your checking. Check dates, check credentials and understand what is left out in these reports (ie; what makes the property unique, council restrictions, convenience to amenities etc).
Basically, if it is computer generated it is not likely to be accurate. And it is never advisable to begin searching for your new property, believing that your old property will sell for a computer generated market price, no matter how eager you are to begin your search.
To Find A Good Real Estate Agent in Your Area to Help With Your Property Valuation Click Here