What is an online real estate appraisal ?
An Online Real Estate Appraisal is a market appraisal of your property that is generated using an online database of information.
This information is keyed in using data that the agent has chosen to add which means you are relying on someone you haven’t met to use up-to-date information and ask the appropriate questions needed to give you an accurate appraisal.
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However, if you read the disclaimer you will notice that there is’ no guarantee given to the accuracy, completeness or reliability of the information in the report you will receive’. Essentially, what this disclaimer is saying is that the figures it will give you should be used a rough guide only.
Often the online reports are generated from a central database at your agents head office.
It takes your criteria and calculates an average figure for your property based on a range of standard differences between yours and comparible properties in your area.
Are all online real estate appraisals the same?
A free online real estate appraisal can be anything from a simple ‘postcode profile’ which is usually a list of the properties sold in your area, to an actual figure for your property, based on basic features your property.
For example, an Online Real Estate Appraisal ‘report generator’ will commonly ask you to tick a series of boxes to find out whether your property is:
- a house, flat or land,
- how many bedrooms and bathrooms,
- whether it is over or under so many square feet,
- what features is has. Ie; a pool, air conditioning, views, security, etc.
- the basic condition of the property – good, average or poor
- does it include garage, carport or off-street parking
- whether you are the owner, tenant or buyer
One major difference between an online appraisal and an appraisal done by your local agent is that your agent will do an onsite inspection and include details in their calculations that a database cannot take into consideration.
Such as local market conditions, where your property is in relation to other properties (geographical data) and factors unique to your property. Although, having said that, online real estate appraisals can be quite detailed. Some give mapped locations of properties sold and the figures they sold for. This can mean a lot of your initial research is done for you.
Why are online appraisals often free?
An Online Real Estate Appraisal is often generated by an estate agency as a way of seeking out properties for sale and as a way of selling add-on services such as mortgage brokerage services and information on buying and selling property (often in the form of a report or –e-book).
What value does an online appraisal give?
An online real estate appraisal is a handy introduction to your local real estate agent and is a great way to begin your research.
Once you have entered your information into their database you will most likely receive an email giving you a median price for your property and/or information on properties sold in your area.
Soon after, your local agent will receive a notification that you are interested in selling your property and will send you an email or letter and/or call you to discuss your requirements.
An online real estate appraisal is also a way of finding out about other related services. You will often find that once you have filled out an online real estate appraisal you will also begin receiving information from mortgage brokers and investment professionals etc
When you fill in the online questionnaire, there will often be questions about whether you are interested in re-financing, renovating, retiring or moving. More and more, real estate companies are diversifying, which means they are adding services and either partnering or employing property investment advisors and mortgage brokers etc.
The fact that online appraisals are often free and take so little time to generate is an indication of the very general nature of most online real estate appraisals or property valuations.
Before signing on the dotted line, always you should contact our consumer helpline on 1300 729 540 we can give you advice how to choose the best agents to interview.
We also have compiled consumer ratings scores on real estate agents in your area and we can show you how to save 10% off the real estate agents fees which ever agent you choose to go with.