Computerized home valuation tools are increasingly marketed. As a home buyer or home seller, you might find yourself using these tools. It is important to understand how these tools work before doing so.
The Process of Computing Computerized Home Prices
Computerized home valuation tools normally reference property data from public records. This includes home features such as finished space, number of rooms, and siding. It is placed in a database and run against preset formulas to compute the value of a home.
Public Record Limitations
Public information is not usually accurate. In most cases, the information has not been checked for years. It might fail to reflect any home upgrades. Also, it will not incorporate features that could directly affect the value of a property, such as the quality of hardware and appliances.
Reliability of Computerized Home Valuation Tools
Given that public information is not comprehensive, it will not be truly correct. Most websites mention a certain margin of error somewhere. However, those margins may be dramatically higher in some cases.
Dangers of Depending on Computerized Home Valuation Tools
As a consumer in the real estate market, it will be a mistake to strictly depend on computerized home valuation tools. When selling a home, you may choose an incorrect starting price and lose essential marketing time. As a home buyer, you may upset a seller and lose out on the property of your dreams by starting too low on price. An accurate price range involves a knowledgeable professional reviewing comprehensive facts from more than one source and comparing it to comparable properties selling within the last few months. This is where your real estate broker comes in. When pricing real estate to sell, he/she can provide a report that justifies a particular price point. On the buying side, your agent will advise you on an offer price that positions you for the best opportunity for success, particularly in multiple offer situations. Remember the Florida computerized home valuation tools reliability noted above when searching online and connect with a local real estate broker for sound advice.
