Accuracy Of Computerized Property Pricing Estimates In Southern CA

Computerized property pricing estimates are becoming more popular. As a home buyer or home seller, you might end up forming an opinion on the list price of a home using these estimates. It is critical that you know how these estimates work prior to relying on them.

How Computerized Property Prices are Determined

Computerized property pricing estimates typically use property facts from public sources. This includes information such as living area, bedrooms and bathrooms, and construction type. It is placed in a database and used in predetermined calculations to compute the value of a property.

Limitations of Public Information

Publicly available data is not usually reliable. Commonly, the data has not been updated in many years. It might fail to incorporate any renovations. Furthermore, it will not list items that will directly change house values, such as the condition of different components.

Accuracy of Computerized Property Pricing Estimates

Because public information is not complete, it can not be truly correct. Most websites provide a range for the margin of error. Keep in mind, those margins may be dramatically more locally.

Why You Should Not Depend on Computerized Property Pricing Estimates

As a property seller or buyer, it will be a mistake to solely use computerized property pricing estimates. When going to sell a property, you may set an incorrect price and lose essential marketing time. As a home buyer, you may anger a seller and miss out on your dream home by pricing too low. A proper price range requires an actual person evaluating comprehensive property details from multiple sources and comparing a home to comparable sold properties. This is where your real estate broker plays an important role. When pricing a home to sell, he/she can prepare a report that identifies a specific price range. On the buying side, your agent will advise you on a fair price that gives you the best opportunity for success, particularly in multiple offer scenarios. Remember the accuracy of computerized property pricing estimates in Southern CA provided above as you are searching online and contact a local real estate broker for sound advice.