Computerized home pricing tools are showing up more often nowadays. As a real estate consumer, you may end up relying on these tools. Do not use such estimates without understanding first how they are calculated.
The Process of Estimating Computerized Home Prices
Computerized home pricing tools often extract real estate details from public records. This includes facts such as living area, bedrooms and bathrooms, and acreage. This is entered into a database and compared to recent sales.
What Is Included in Public Information
People may not know that publicly available data is not typically current. Many times the data can be really old. It may not include recent renovations. Additionally, it will not include items that may change the price of a property, such as the quality of upgrades.
Reliability of Computerized Home Pricing Tools
Because the information referenced by computerized home pricing tools is limited, it will of course be imprecise. Most online tools note an average margin of error somewhere. However, the actual error might be much more in your market.
Why You Should Not Depend on Computerized Home Pricing Tools
As a property buyer or seller, it can be dangerous to completely use computerized home pricing tools. When listing, you may incorrectly price your home and lose essential time. As a home buyer, you might insult a seller and lose out on your dream home by coming in too low on price. An accurate price range involves an actual person reviewing detailed information from multiple sources and comparing a home to recently sold homes with comparable features. This is where your real estate professional comes in. When pricing a home to sell quickly, he/she can compile a report that identifies a particular price range. As a buyer, your agent may help you determine a fair price that gives you the best chance of success, especially in multiple offer scenarios. Keep the reliability of computerized home pricing tools in Grand Rapids Michigan above in mind when browsing online. If you have any questions about the Value of your home, feel free to Contact me for a free Comparative market analysis. I can be Reached at 616.949.1004. John Doorn. JH Realty