Accuracy of property valuation sites

How accurate do you think property valuation data is from services like Domain, CoreLogic etc. In today's market?

 

In this market, paid valuations are not even close. Those pages are more for fun than for making calculations. Their job is to attract clicks on to their pages. They would be closer on a home unit or the cookie cutter style home where they could be out by 10 to 20 % than on a premium property or development site.

 

This. I dont think any of the paid or non paid market valuations are correct. Even if you "PAY" someone to go out and look at the house and valuate the house in a FOMO and frenzied market the figures are always off.

You will also notice that most valuations tend to be on the conservative side.

Also the RE/Domain/Onthehouse in fact pretty much all the online appraisals and medians/comparisons arent reflecting in the slightest the current selling prices. I've been eyeing a good number of suburbs and everything is at least $50-$100k higher. Some ALOT more than that.

Been hearing many complaints/whinging now from buyers saying they are seeing medians at say $750k, agents price guides at $800k but it eventually sells for like $900k+.

At the upper end of the market its even worse. Medians on RE/Domain show $1.3M, Agent advertised $1.4-$1.5M and actual selling price $1.9M!!!!!!!!!!!

 

How do you value a property in a rapidly rising market remembering that sold price data is essentially stale?

Add 5%- 20% as a projection in a definitive timeframe based on what the most current data/trends are indicating.

 

I found that none of them have updated any values for the last few months, at least for areas near me

 

Because the market is flying so whatever they report it will be wrong.

Seriously though because RE/Domain use rolling 12 month medians these crazy sale prices wont show on their market analysis tabs until later in the year, then the graphs will show massive spikes in median price.

Buyers should not be using these in the current market imho to gauge how much they should be paying. They are in a world of pain if they do that and most likely wont be winning any properties and their offers wont even be considered as they will be too low.

 

Try RP data but nothing as good as being on the ground and seeing weekly sales and talking to the agent.

Than wife tells you she loves the house and all prices go out the window and you just pay whatever the wife thinks it’s worth.

 

My house is about half the realistic value. So are my two neigbours. They refused to pull the value estimate down. So the only way i can get it pulled down or adjusted is for a real estate agent to value it or sell through a real estate agent. Sounds like i am being manipulated. Big shout out to Onthehouse which is owned by Core Logic who immediately pulled my low value estimate down. The other mob refused.
Why is it even there????????????????????
It is an algorithem. No relation to individual homes. Why not a medium price for the area..
I believe the whole purpose is to force the seller to sell through an agent or the undervalued price will not be withdrawn. Even then the neighbours low valuations will continue to be shown dragging down your houses value. The other reason is to educate the seller into believing low valuation is a reasonable price for their home and make it easier for the Agent LOL. Crowd funding for legal action the prevent these dodgy value estimates would be a good idea. In Queensland it is illegal for agents to to give price estimates before an Auction but they allow dodgy value estimates

 

I think that the automated valuation and comparables supplied by corelogic is an ok basis to start with. You just have to work out if you need to adjust the price up or down based on the comparables and then look at the direction that the price is changing up or down per month and add a month or two price movement as your looking at old data. Don't take the avm as perfect, use your own judgement and any direct info you can gather from agents, locals, etc. Property manager could help you identify things that could reduce or increase price if you can't visit property yourself.