You may run into automated property pricing tools when you search for home buying and selling information online. As a real estate buyer or seller, you might find yourself comparing the results to the offering price of a home. It is critical that you know how these tools work before doing so.
How Automated Property Prices are Computed
Automated property pricing tools normally use data from public records. This includes details such as square footage, number of rooms, and acreage. This is placed in a database and used in predetermined calculations to estimate the market value of a property.
Accuracy of Public Property Details
Many do not know that public information is not often precise. Often, the information is dated. It might fail to note any improvements. It also often excludes data that can influence home values, such as the quality of components.
Reliability of Automated Property Pricing Tools
Given that the information referenced by automated property pricing tools is incomplete, it will naturally be prone to error. Most websites disclose a margin of error in the fine print. However, those margins could be much more for certain houses.
Why You Should Not Depend on Automated Property Pricing Tools
As a home seller or buyer, exclusively depending on automated property pricing tools could be a regretful mistake. When selling a property, you might incorrectly price your property and waste critical marketing time. As a home buyer, you could alienate a seller and miss out on the property of your dreams by pricing too low. A proper price range requires an actual person reviewing comprehensive information from more than one source and comparing it to similar sold homes. This is where your real estate broker plays an important role. When marketing real estate to sell, he/she can prepare a report that justifies a specific price range. As a home buyer, your agent will advise you on a fair price that positions you for the best chance of success, especially in multiple offer situations. Remember the Boston automated property pricing tools reliability offered above when searching the web and contact a local real estate broker for the most accurate information.