Colorado Computerized Property Pricing Websites Accuracy
Computerized property pricing websites are becoming more common. As a home buyer or home seller, you may find yourself relying on the estimates for your real estate decisions. Avoid relying on such estimates without knowing first how they are calculated.
How Computerized Property Prices are Determined
Computerized property pricing websites typically use real estate details from public records. This includes basic information such as finished space, bedrooms and bathrooms, and siding. Data is placed in a database and processed against preset calculations to determine the value of a house.
Public Record Drawbacks
Public data is not usually up-to-date. Many times the data is dated. It may not note any renovations. Furthermore, it does not account for features that could directly change property values, such as the condition of the property.
Accuracy of Computerized Property Pricing Websites
Because the information referenced by computerized property pricing websites is limited, it will of course be inaccurate. Most websites provide a margin of error. Keep in mind, the resulting difference may be dramatically more in local markets.
Why You Might Not Want to Depend on Computerized Property Pricing Websites
As a real estate consumer, solely depending on computerized property pricing websites could be a big mistake. When going to sell real estate, you might end up overpricing and waste valuable marketing time. As a buyer, you might outrage a seller and lose out on your dream home by pricing too low. An accurate price range involves a knowledgeable professional reviewing comprehensive property details from multiple sources and comparing a home to similar properties sold within the last 6 months. This is where your real estate professional comes in. When pricing real estate to sell quickly, he/she can provide an analysis that identifies a certain price point. As a home buyer, your agent may help you determine an offer price that gives you the best chance of success, particularly when there are competing offers. Remember the Colorado computerized property pricing websites accuracy provided above as you are searching online and consult with a local real estate agent for sound advice.