RP Data..How accurate??

I got a report on my PPOR today and it was about 150k different from the real estate agents estimates when we thinking of selling about 5 weeks ago. Even taking into account some leeway from both sources, this is a big difference and I'm wondering if I just wasted my money the premium subscription.

Thanks in advance for any advice.

 

Data tells you what the house was worth when the data was collected and your REA is telling you what he thinks the property will sell for tomorrow.

As a result valuations and valuers who rely on this data to inform their opinion are usually always lower than agents.

In saying that $150k seems like a big difference. Your agent could be over quoting to get a listing. Unless you're in a really hot market and selling in a really high price bracket

 

i've found it normally spot on but saying that my mums ppor was said to be worth 600k through thr rp datta avm when in fact it's around 700-800k also if the market is moving rp data can take 1-3 months to take into account recent sales.

like if you look in a regional town it'd be spot on compared to a rising suburb where there could be a bit of era. also the re agent could just be quoting you high so you sign with them.

 

That's it....one has a vested interest to increase its value whilst the other has a vested interest in its past value.

 

I should have qualified my comment. The REA quote was 150k less than the RPdata info I looked up yesterday. I do think they were lowering our expectations and your points definitely make sense, but it just threw me with such a large difference in numbers. I guess I'm just trying to gauge the qualities of the evaluation tools as begin to learn more about investing in property.
BTW, if the RPdata numbers are the right ones...HAPPY DAYS

Thanks again.

 

RP Data can only be based on reasonable assumptions, land size, building size, year built and compareable sales. It cannot accurately factor in quality of fixtures, improvements and an accurate assessment of the condition of the property for better or worse.

 

How were you using the data? Were you comparing apples with apples?

 

Or source out another Real Estate Agent, get comparisons.

 

Onthehouse seems to be all over the place, reasonably accurate in some cases and wildly inaccurate in others. The 'valuations' seem to jump around month to month both too high and too low, RPData is far more accurate IMO

 

Computer models are only as good as the data sources used - this may lead to an accurate or wildly inaccurate result.

As noted above, agents may have a closer feel for the market in trying to win your custom but may also be more sensitive to market sentiment - would know that the market has peaked or is falling.

RP Data relies on historical data which will show continued growth until results start to indicate a move in the opposite direction.

 

Onthehouse cannot take into account if a property was knocked down and rebuilt and other factors such as extensions etc

 

Has anyone taken the plunge with property value yet?

 

RP Data based valuation came back on one of my properties with a valuation about the same as when I bought it over a year ago. My broker said he was a bit surprised by that. It moved at least 60k up in that time. Another property in have reflected the boom change. So I would have said it was a delayed RP data information, but seeing as one moved and one didn't it's hard to say. I am sure they both moved though being in Sydney in suburbs that did very well.

 

does anyone know how often the valuations on RP Data are updated?