Accuracy of Homehero Price Estimates?

Discussion in 'The Buying & Selling Process' started by Realist35, 10th Nov, 2016.

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  1. Realist35

    Realist35 Well-Known Member

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    Hey guys,

    I understand relying on automated online price estimates of properties is not the best approach. However, I am just starting the PI journey and I'm having a trouble guessing the fair market value of a potential purchase.

    I just discovered the web site www.homehero.com.au thanks to an experienced investor on the forum. I have played a bit with the site, tried punching in different listed and sold properties. The site gives the values that are 95% of the time very close to the listed/sold prices. That made me think I might be able to use this to my advantage and avoid pitfalls of paying above the market value.

    What are your thoughts?
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    your banker/broker would perhaps have access to more solid data

    seeing you are in WA try Jess P that posts here

    ta

    rolf
     
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  3. Agent30yrs.

    Agent30yrs. Well-Known Member

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    I don't want to sound cynical but even a broken clock works twice a day ! @Realist35 were these estimates posted before the properties got listed/sold , or after ?
     
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  4. dabbler

    dabbler Well-Known Member

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    The only way, is knowing the area then looking at comparables, or hit the ground going to opens and look at the sale prices, or a combo of both.

    Or you can send a valuer if not wanting to put in any effort or time.
     
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  5. Realist35

    Realist35 Well-Known Member

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    How much do valuations cost roughly?
     
  6. Do Androids Dream

    Do Androids Dream Well-Known Member

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    I came very close to making a very costly mistake relying on an online price estimate recently and thankfully, the deal didn't work out because the agent became too greedy. Suburbs can have huge price variations, let alone streets and unfortunately, the online estimate apps are not always the best tool to rely on, particularly in a heated market.

    Please spend time looking at previously sold properties in the area and you can do this using the realestate.com app and searching 'sold' properties. Then zoom into your chosen area and compare sold houses in the last couple of months on the same street and nearby streets. Check out equivalent number of bedrooms, bathrooms, etc. and understand why they are priced differently (e.g. land size).

    Nothing beats your own research and after all, you are paying a significant sum of money for this property. You want to be sure.

    All the best!
     
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  7. Perthguy

    Perthguy Well-Known Member

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    The best resource for sold properties I have found is KSOU
     
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  8. Big Will

    Big Will Well-Known Member

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    It is only an idea for a baseline or starting point.

    It has major flaws with it, things like it cannot pick up if the place has been renovated, extended, or lack of comparable sales.

    Take it with a grain of salt because during boom times it will come up short and during a downturn it will likely be above as they use data that is 12 months old.

    Basically my understanding of it is that it comapres all 3/1/1 as 3/1/1 and their land size and previous sale to come up with a number. If they subdivded the block since they last sold you will be paying more for it.

    Best way to get an estimated sale price is look at comparable sales.