How Accurate Are Online Valuation Tools?
Economy | 01 Jan 26, 00:00
Whether you’re planning on moving home, or you’re simply intrigued to know how much your property is worth, there are many sites that offer you an instant property valuation – including here at Richardsons.
But how accurate are these online valuation tools? Can they really provide an accurate idea of the value of your home?
Within this article, we’ll take a look at online valuation tools – what they are and how accurate they are.
What is an online valuation tool?
An online valuation tool provides an instant valuation of your home, based on a number of factors, possibly including:
- Sold house prices in your area
- Current market trends
- The size of your home
- Demand for property in your area.
This is a quick and easy way to get a rough insight into how much your home is worth.
How accurate are online valuation tools?
While an online valuation tool can provide a useful idea of how much a property is worth, it will never be as accurate as getting us to visit your property. You shouldn’t, for example, price your property for market based on an online valuation tool alone.
It is, however, a perfectly reasonable way to find out what your house could be sold for if you’re just looking to find out how much your home is approximately worth.
Let’s take a look at some of the pros and cons of using an online valuation tool.
What are the pros of using an online valuation tool?
Online selling tools offer a number of benefits, including:
- At the beginning of your selling journey, an online valuation tool can be a great way to discover the approximate market value of your home
- Our online valuations tool is free to use
- As our online valuation tools are online, you can find out the valuation of your home anywhere, anytime, without having to speak to an agent
- They can be a good reference tool for buyers, allowing them to see how much other homes in the area are selling for.
What are the cons of using an online valuation tool?
There are, however, also a number of downsides to using an online valuation tool, including:
- Different valuation tools calculate the figures based on different formulas so they can vary depending on the online tool that you use
- Figures used by online valuation tools are automatically generated using historic sale information and are not always up to date
- If your area is home to lots of different types and designs of properties, this can impact the valuation provided.
Ultimately, if you are serious about selling your property and you’re looking for an accurate valuation, it’s always worthwhile getting an expert valuation. An estate agent will be able to give you a much more accurate insight into how much the property you’re looking to sell is worth than an online valuation tool.
Richardsons estate agency is one of the leading independent agents in Gibraltar. We have a track record of selling houses for higher than the asking price because we give accurate and realistic free instant valuations and professional valuations.
Get in touch with our friendly team at Richardsons and let us help you take the first steps towards your next move.