Realestate.com.au property "valuations" too high?

I ran my portfolio through the free property value estimating tool on realestate.com.au, seemed to me that most were too high, by up to 10%.

Am I out of touch or could this be an intentional ploy to entice people to list their properties?

Is your experience the same as mine?

By the way, you have to sign in to get the exact valuation.

 

Mines too low.. most likely due to data available, number of recent comparable sales, how up to date information they have is. The problem with property is recent data is always miniscule for algorithms use with any relevancy. compare this to industries with "big data" where algorithms shine.

 

It would use algorithms to pick comparables. Depending on your area, the comparables could be bad - eg properties sold on affordable housing program, or ones with higher or lower level of reno/repair. So it'll never be right imo.

 

Possibly a bit conflict of interest.
property transaction = Revenue.
It is in their interest to have the prices higher. Owners would want to sell because the price is higher. Buyers may want to buy because the actual price is lower than the estimate.

 

@D.T. Is closest to the mark. It's No more accurate than a punter forming an opinion based on the form guide. In most cases the nag will finish but it's position is uncertain.

Unless you're an agent you can't advertise directly on re.com.au so it shouldn't influence your decision to list.

 

Evidently they don't want me to sell my PPOR... (small architect-designed home in an old suburb with zero comparables)


Domain doesn't want my business either:


My most recently bank-val'd IP though is accurate... Domain is bang-on and Realestate under by <5%.

 

Domain is about 5% too low for us. RE gives a big range of 140k

 

personally I think relying on a online valuation is super risky,
even desktop valuations I never use or trust unless I have to or its my only resort or it actually helps me

comparables, comparables, comparables for me

 

High, low and on the money, only an indicator.

 

Agreed. But the problem for us as BAs sometimes trying to price a unique property and also what @chylld discovered, is what happens when there are no comparables?

 

Checked online calculators for our home, realestate.com.au was much closer to present value than domain or onthehouse.
Marg

 

In my case, low val by $95k. Reval about a year later at purchase price.

 

Most of mine show a 10-20% range..pretry pointless, as I could just get the same from searching the suburb for similar comparables.

 

Log into RE to get the exact price.

 

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Well. If there is no comparable I would say the expertise of a ba would be more important than a piece of software

But at the end of the day if there is no buyer Then there is no value either

 

There's always a buyer, just depends on how low you are willing to go.

 

for me, RE valuation top range value is still 15% below real sale price, low range is below 40%.

useless...

 

That’s not 100% accurate.

You can sell direct (For sale by owner) by utilising access via a special agent. Yes, they are an agent but you fill an online form all by yourself, add photos, set price etc, they just upload the info to RE.com.au on your behalf.