Home Valuation Website BasicsReal estate appraisal can be carried out on home valuation websites using automated valuation models (AVMs). This might seem to be an easy way to find the value of your home prior to selling it, but there are problems associated with an AVM.

Just as with any software, it’s fine if your home conforms to the standard of all other homes in a particular development, and it is possible for a home to be over or under valued. An overvaluation is to your benefit if you are selling, but not if you are buying, and the reverse is true of an undervaluation.

An AVM can be particularly inaccurate if the home being appraised has been significantly improved over other homes in the same area. Another weakness is that it does not take into consideration the heating boiler might be faulty, or other parts of property might be in poor repair or not working as they should. The modeling criteria used are generally fairly basic, and home valuation websites tend to lump most homes into a specific area into the same price band.

Real Estate Appraisal: The Need for a Home Evaluation

Real estate appraisal is an essential component of the process of selling a home. You must know how much to ask for your property, and the buyer must have an idea of what to offer. Sure, using online home evaluation websites is convenient and quick. However, it is necessary to have a manual real estate appraisal carried out for an accurate reflection of the selling price of your home.

Some websites will give you a free estimate of the average value of real estate, whether you are buying or selling. This gives you a ball park figure for your offer or your initial asking price. This is generally the most valuable aspect of automated valuation models.

Home Valuation Websites or Human Appraisers?

Home valuation websites are good if you are seeking a rough evaluation of the selling price of your home. However, for a more accurate asking price you should use a human appraiser. A computer program of any type can only produce information based upon its input.

A program does not have the ability to make an emotional judgment, such as how lovely a property can look in its current setting. To some people, a pond or fountain can make the difference between two properties of similar construction and location. A fresh coat of paint can add thousands to the selling price of a home, as can other forms of curb appeal that only real people can appreciate.

Would a genuine log fire give a home an advantage over those with only central heating? This type of enhancement is more personal, and may add value to some people but may be a negative with others. Machines cannot make that judgment for you. What this example does indicate is that that the quality or value of a home to the buyer is not the same as its selling price. Many people would be willing to pay more for enhancements that are appealing to them, while others may pay to have them removed!

For an accurate real estate appraisal to meet your needs you must fundamentally choose between an experienced human appraiser and home valuation websites that use software. An indication of the true value of property is an important factor when buying or selling homes.

It lets a seller know where the asking price should be pitched, and lets a buyer know how much to realistically offer. It is always good to know if the price advertised for residential property is a bargain or is overstated.

Factors Affecting Real Estate Pricing

There are several factors that can affect the selling price of domestic real estate in relation to that of neighboring properties. Curb appeal is one: a neat yard or garden is one such factor, new door furniture another and the general ‘newness’ or freshness of its visual appearance is very important.

Location and the neighborhood is also a factor, and a home in an area where the surrounding properties also look good will always sell better than a jewel surrounded by untidy and poorly maintained housing units.

Home valuation websites offering automated valuation models have their place in providing ball park pricing suggestions. However, nothing can beat a real estate appraisal carried out by a licensed appraiser for accuracy. That is always best if you are seeking a price that accurately reflects every aspect of a potential new home. Your real estate advisor will be able to help put you in touch with a recommended appraiser.

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