Property valuation calculators: Why they are only a guide
People who want to find out the value of their property often use online valuation calculators. But be careful: these only provide an initial assessment and are no substitute for a professional appraisal. An incorrect offer price can cost owners hard cash.
How do property valuation calculators work?
Many online calculators on property portals and estate agent websites ask for basic information:
- Location (postcode)
- Living space and number of rooms
- Type of property (detached house, flat, etc.)
- Condition of the property (well maintained, in need of renovation)
Based on this data, the computers compare the information with similar properties in their databases. The result? A rough guide value - No precise evaluation. Individual features of the property such as extensions, plot size or special features are not taken into account.
Where are the weaknesses?
The accuracy of the result depends heavily on the quality of the database:
- Offer prices vs. sales pricesCalculations are often based on offer prices that were not realised in the end.
- Regional differences: There is more data on property prices in large cities than in rural areas.
- Property type: Condominiums are easier to compare than detached houses, which have highly individual characteristics.
It can happen that the calculated value is either too high or too low. This has consequences for the sales process:
- A Offer price too high deters buyers, the property stays on the market longer.
- A Too low price leads to quick sales, but often below value.
Why a professional broker is indispensable
A property expert knows the local market inside out and takes all value-influencing factors into account, such as
- Location and infrastructure
- Property condition and furnishings
- Individual special features such as extensions or modernisations
An experienced broker determines the fair market price and guides you through the entire sales process. This will help you to avoid pricing errors and achieve the best selling price.
✉️ Would you like a professional property valuation?
Would you like to know how much your property is really worth? Contact us - we will be happy to advise you and prepare a well-founded valuation!
Robert Schüßler
Property valuer (EIA and IHK)
Photo: © AndrewLozovyi/Depositphotos.com
