Property Apps - be careful if using them for research purposes

Discussion in 'Property Information Resources & Tools' started by wylie, 2nd Dec, 2019.

Join Australia's most dynamic and respected property investment community
  1. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    12,470
    Location:
    Brisbane
    I love the BOQ property app and use it all the time to get information I am looking for.

    But I know that the estimated sales prices are all over the shop and would never rely on them to be anywhere near accurate.

    My brother is pondering selling a house and I ordered a report on it, and also one on a house we own.

    Our property has a UCV of $760k and the estimated price range is $690k-870k with "high confidence". It would be a rare thing indeed for an inner ring property to sell for under the UCV.

    We had this property valued a year ago at $950k.

    The houses that this automated system used to compare with ours are each on blocks ranging from less than half to just over half the land size of our block. Houses look similar enough for a comparison. We have a large block, but they are not that rare that some computer could have searched for sold properties with larger sized blocks to compare ours with.

    How can a smart system (?) tell me the UCV is $760k and suggest sale price would be so far out?

    The emails I get from Onthehouse are worse. Our house photo is very old (midway through a renovation we did nearly 20 years ago - obviously no photos available since then as we've never sold or rented it).

    They give price range from $900k to $1m with a "low accuracy" comment, and that estimate may well be correct. We've just had a valuation done but haven't yet asked our broker for the value.

    But the "similar properties recently sold" they've used is for a two bedroom unit which sold last month for $270k.

    Someone needs to tweak the way the computer finds the comparable properties. :eek:
     
  2. craigc

    craigc Well-Known Member

    Joined:
    25th Jun, 2016
    Posts:
    1,229
    Location:
    Melbourne
    Agree - seem to be very inaccurate in my experience and almost getting worse.
    It seems the comps used are the problem as I find they often comparing units to houses, wrong bedroom count and are way out in estimates.
     
  3. theperthurbanist

    theperthurbanist Well-Known Member

    Joined:
    5th Aug, 2016
    Posts:
    769
    Location:
    Perth
    Even if the figures were realistic I’m not sure how useful a $200k range in sales price would be anyway!
     
  4. Guest

    Guest Guest

    I have seen fairly accurate results from REALas, but it only covers properties for sale I think.
     
  5. kierank

    kierank Well-Known Member

    Joined:
    20th Jan, 2016
    Posts:
    8,410
    Location:
    Gold Coast
    We have a property for sale at the moment.

    REALas couldn’t even come up with a price :D. How useful is that?

    At least BoQ came up with a range. The offer we have on the table (currently conditional) is less than 4% above BoQ’s upper limit.

    This property is difficult for a computer to come up with a price but, based on this sample of one, BoQ is a lot better than REALas
     
    Last edited by a moderator: 10th Oct, 2021
  6. Guest

    Guest Guest

    More useful than spitting out a completely inaccurate number as was the case in the OP.

    "Better to remain silent and be thought a fool than to speak and to remove all doubt." ;)
     
  7. kierank

    kierank Well-Known Member

    Joined:
    20th Jan, 2016
    Posts:
    8,410
    Location:
    Gold Coast
    BoQ gets their information from CoreLogic/RP Data.

    If a bank can come up with a good estimate (not their core business), one would have thought an organisation such as REALas who specialise in property price predictions would do better than a bank.

    Lowers my faith in REAas.
     
    Last edited by a moderator: 10th Oct, 2021
  8. Guest

    Guest Guest

    Your single anecdotal example doesn't prove that they don't.

    You seem to be good at confusing your limited personal experience with some sort of meaningful sample.
    REALas is owned by a bank.
     
  9. kierank

    kierank Well-Known Member

    Joined:
    20th Jan, 2016
    Posts:
    8,410
    Location:
    Gold Coast
    There is another property two doors up from ours that is on the market.

    I ran a BoQ report and the current list price is at the bottom end of their range. I am impressed, as I stated earlier this area
    This property has been on the market for over 12 months. Its initial listing price was near the top of the BoQ range.

    REALas doesn't even list this second property. It looks like it takes more than 12 months for them to find out :eek:.

    So, I did more research. I checked www.realestate.com.au and it shows 8 properties currently for sale in this area including the two in my sample.

    REAlas shows 4 properties and one of those is not even on the market according to www.realestate.com.au and www.domain.com.au. So, they found 3 out of 8, that is 37.5%

    On the REALas website, it states "We were sick of the BS too." AND "In 2011, our founders set out to develop the most accurate property price prediction service in Australia."

    After 8 years, it looks like they have a lot more work to do.

    My faith in REAas is lowered even more.

    No confusion here.

    In my earlier post, I did write:
    After researching this whole suburb as advised above, I stand by this opinion.

    You seem to be good at confusing your vast personal experience with no sample ;).

    I know, the ANZ.

    One would have thought that one of the BIG four, with all of their resources including financial, would do a lot better job at this than one of their smaller competitors.

    BoQ offers its property prediction as complimentary service to their core business of banking whereas for REAlas it is their core business to be "the most accurate property price prediction service in Australia".
     
    Last edited by a moderator: 10th Oct, 2021
    craigc and Sackie like this.
  10. Guest

    Guest Guest

    My sample is years of comparing REALas/BOQ/PropertyValue/OnTheHouse. When listed I have found REALas to be the most accurate.

    Finding that a property isn't in their database doesn't have any bearing on their price accuracy.
     
  11. Thomacino

    Thomacino Well-Known Member

    Joined:
    9th Nov, 2018
    Posts:
    172
    Location:
    NSW - Sydney
    You know there's valuers in Australia right...
     
  12. kierank

    kierank Well-Known Member

    Joined:
    20th Jan, 2016
    Posts:
    8,410
    Location:
    Gold Coast
    I would term that your experience ...
    But having 62.5% of the listed properties for a suburb missing makes in pretty useless.
     
    Last edited by a moderator: 10th Oct, 2021
  13. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    12,470
    Location:
    Brisbane
    Well... today I had an updated Onthehouse email report saying our house estimate is $800k to $900k with low accuracy.

    On 12 November it was $900k to $1m with low accuracy.

    It's curious that whatever process is used to look at figures is seemingly so random.
     
  14. kierank

    kierank Well-Known Member

    Joined:
    20th Jan, 2016
    Posts:
    8,410
    Location:
    Gold Coast
    Wow, a 10% price reduction in a month :eek:.

    The Brisbane boom is definitely over :D.
    TBH, I don’t find these price prediction websites “curious”; more like “”comical”.

    Based on your post, I entered the address of one of our properties into onthehouse only to find that the house was built in 1988 (no, it was built in 2012) and the price prediction was basically land value.

    Yep, good for a laugh ;).
     
    JennaL and wylie like this.

PFA Property Expo is designed in a way that visitors can gather maximum real estate knowledge with added benefits. Different speakers will be presenting on different topics as where to buy, when to buy in this market...