Accuracy of onthehouse and propertyvalue website value estimates

Discussion in 'Property Market Economics' started by Tillie, 31st May, 2019.

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  1. Tillie

    Tillie Well-Known Member

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    18th Jun, 2015
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    Melbourne
    Hi Property gurus,

    I am planning to come out of my property investment 'retirement' and now conducting my research.
    Not being in the market since 2017 I got surprised when noticing that 'onthehouse' and 'propertyvalue' website value estimates are a lot higher than the recently (within a couple months) sold prices for many properties. Has anyone else noticed same and know what is causing the values to be so far off?

    The value can be as high as $50-$100k off from actual sale price. It is a lot when comparing the houses selling prices that generally are $550k - $700k price range. I know that values are just high level estimates only and just done using various mathematical algorithms, but my previous experience still was that these values are not so far out from the reality.
     
  2. Fargo

    Fargo Well-Known Member

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    Vic
    It is not accurate, you cant take any notice of it. It often has the right price for what a property sold for, but the price is attached to the wrong property. It often attaches the price of a property to the residential address of the vendor, when a different property was sold. You can deduce from sale date description and dimensions what a particular property may have sold for but it may show an incorrect address.
     
    Rich2011 likes this.
  3. berten

    berten Well-Known Member

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    It's extremely inaccurate. Use comparables from the last 6 months.
     
  4. wylie

    wylie Moderator Staff Member

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    Agree with both replies above. Apart from being inaccurate, the comparables given are in completely different suburbs, nothing like the house in question, nowhere near similar spec or value.

    I've no idea where they pull them from.
     
  5. 3rd Drop

    3rd Drop Well-Known Member

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    Melbourne, VIC
    I wouldn't make a decision based on onthehouse.com. I bought a house in February this year for $850k. I just checked it now, it's showing $890k as the mid range. What's the basis?
     
  6. Shogun

    Shogun Well-Known Member

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    Perth
    A 6 unit developed site I searched for unit prices.
    The front one had slightly bigger yard, one has a 1 car garage plus a parking bay all other 2 bay garage.
    So mostly the same. yet about $120K difference in estimated prices using one of those sites
     

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