The market is constantly changing, and therefore the property price estimate for your home. The good news is that today, instead of having a real estate agent come to your house for an appraisal, you can get an up-to-date estimation online in real-time.
Of course, online calculators have their pros and cons compared to an in-person appraisal. Moreover, their reliability is dependent on the data they use. It’s also subject to how much data there is for an area and a specific property.
This is where an agent can come in to give you local market insights on how much your property might sell for. This is called an appraisal. Agents are experts in their local areas, so having a combination of whole market data and specific agent knowledge will give you a very precise idea of your potential sale price.
At Avnu, we believe that it’s important to have a balance of both agent and data insights to get the most accurate property price estimate. That’s why we’ve partnered with Core Logic, the industry-leading data provider, to create Avnu’s real-time property report with an online estimator.
How does Avnu’s Property Report work?
To generate an estimation, online calculators use historical data. Avnu’s Property Report analyses comparable sales to get a better indication of the potential sale price of your home. These are properties that sold in the past six months that have similar specifications to yours. They will most likely have the same location advantage, condition, and the number of beds, baths and parking spots.
If available, the algorithm will also find comparable listings which are homes similar to yours on the market right now. This will give you an idea of what you’re potentially competing against.
The more comparable sales and listings the algorithm can find, the higher the confidence rating of the estimate will be. This confidence rating indicates how accurate the estimate is likely to be. There are five levels of confidence – low, low to medium, medium, medium to high, and high.
However, other factors can affect the market value of your home that any online estimator won’t be able to take into consideration such as market sentiment or the overall economic landscape. This is where an agent can come in and further build on the price estimation you have already received.
Property prices fluctuate with market sentiment.
Market sentiment is the confidence level that buyers, sellers, and homeowners have about transacting in the market. If sentiment is high, they are very confident and are more likely to purchase and sell. The opposite is true for low sentiment.
This is an important property metric to look at because market conditions and sentiment could be very different from when the comparable sales on your property were sold. Analysing market sentiment gives greater depth to your property price estimate.
The best way to gauge current sentiment is to speak to an agent, they get real-time insights and feedback from their sellers and buyers at open homes.
In our property report, we have included an indication of sentiment by highlighting buyer demand in our market insights section.
Demand has been calculated based on whether your suburb’s median days on market are higher or lower than your city average. When buyer sentiment and demand is high properties are generally sold quickly and have lower days on market.
If sentiment and demand are struggling, then it’s likely you will have to scale back your expectations for your property price estimate. However, with a strong agent who sells your house with the right strategy, you can definitely achieve a great price.
Overall economic landscape can impact sale price.
Agents are well-versed in the general economic environment and its influence on real estate. Avnu’s Property Report also includes information about the overall property landscape in the “Current Market Snapshot” section of the report which shows how the median suburb price has moved in the last month and the most recent clearance rate.
We always recommend speaking to an agent about what they’re seeing in your suburb.
There are multiple other local market factors that can positively or negatively affect your property sale, such as development in your suburb. A great agent will be able to walk you through these factors for your home and advise on the best strategy to maximise your sale price.
If you want to get started we recommended booking an appraisal and accessing our free report on your property.
DISCLAIMER – The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. LJ Hooker Avnu will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.