Is RPData value estimation accurate?
- Thread starter MTo
- Start date
I was talking to a guy at a bank the other day - trying to talk them into an idea of mine.
We were talking about valuations and he mentioned the RP vals - he has access to them. I don't think he was very impressed with them. They obviously can't take into account anything special about a property i.e. it would just be done on land size, building type, number of bedrooms etc.
They might be okay if you're buying a standard house in an area where all the housing is the same i.e. an estate.
Scott
We were talking about valuations and he mentioned the RP vals - he has access to them. I don't think he was very impressed with them. They obviously can't take into account anything special about a property i.e. it would just be done on land size, building type, number of bedrooms etc.
They might be okay if you're buying a standard house in an area where all the housing is the same i.e. an estate.
Scott
RPData and Residex are very useful tools, but ultimately they simply generate values based on the data in a database.
Unfortuantely this data often does not tell the entire story about the property, so the reports can over or under estimate the property value.
They're great as a starting point, but nothing beats hitting the street, going to lots of open for inspections and auctions.
Unfortuantely this data often does not tell the entire story about the property, so the reports can over or under estimate the property value.
They're great as a starting point, but nothing beats hitting the street, going to lots of open for inspections and auctions.
Thanks for the opinions guys... This is my first time purchasing interstate and I do not have time to inspect the properties...
Have a look at houses sold in Chermside West,
http://www.realestate.com.au/cgi-bi...def&c=39555998&cc=au&p=10&s=qld&tm=1196922443
The RPdata estimates of those properties sold are as follow:
11 valiant st - 457k sold for 488.5k
11 basnett st - 421k sold for 442k
7 mugara st - 455k sold for 460k
21 lindale st - 472k sold for 530k
16 valiant st - 487k sold for 550k
12 kenna st - 480k sold for 485k
As you can see, all the properties are sold above the value estimated by RPData...
Now have a look at this,
http://www.realestate.com.au/cgi-bi...&header=&c=42352733&cc=au&s=qld&tm=1196923558
RPData value the house at 440k... I submitted my best offer of 423.5k and lost...
Today, I put an offer of 411k for this property,
http://www.realestate.com.au/cgi-bi...&header=&c=42352733&cc=au&s=qld&tm=1196923558
RPData value this property at 421k...
When the agent heard about my offer, she sounded so thrilled saying that my offer has been accepted and immediately processed the paperwork...
Her rush made me begin to think that I had offered too high... What do you think? Building and pest inspection will be done tomorrow... and 5 cooling-off days...
Have a look at houses sold in Chermside West,
http://www.realestate.com.au/cgi-bi...def&c=39555998&cc=au&p=10&s=qld&tm=1196922443
The RPdata estimates of those properties sold are as follow:
11 valiant st - 457k sold for 488.5k
11 basnett st - 421k sold for 442k
7 mugara st - 455k sold for 460k
21 lindale st - 472k sold for 530k
16 valiant st - 487k sold for 550k
12 kenna st - 480k sold for 485k
As you can see, all the properties are sold above the value estimated by RPData...
Now have a look at this,
http://www.realestate.com.au/cgi-bi...&header=&c=42352733&cc=au&s=qld&tm=1196923558
RPData value the house at 440k... I submitted my best offer of 423.5k and lost...
Today, I put an offer of 411k for this property,
http://www.realestate.com.au/cgi-bi...&header=&c=42352733&cc=au&s=qld&tm=1196923558
RPData value this property at 421k...
When the agent heard about my offer, she sounded so thrilled saying that my offer has been accepted and immediately processed the paperwork...
Her rush made me begin to think that I had offered too high... What do you think? Building and pest inspection will be done tomorrow... and 5 cooling-off days...
Drop me a line, I've got a Residex subscription and I'm happy to generate a report on any property you like. It beats shelling out $$$ for every property you're interested in.
in short - it's ineffective...IMHO
it doesn't take into account any underlying factors like fit and finish and other externals that affect medians like part sales and transfers of ownership etc.
it also fails to consider bedrooms and studies and extra living and pools etc. and also if the house you look at is far superior or inferior to the average house in the immediate area.
in short - its a computer trying to do a human job - and whilst its arguable that computers do a job quicker and faster, they dont have the emotive capacity to incorporate that million dollar view into an otherwise cheap house that will drag the price right up.
my 2c worth.
take PT_Bear up on his offer...and learn how to appraise houses properly yourself.
it doesn't take into account any underlying factors like fit and finish and other externals that affect medians like part sales and transfers of ownership etc.
it also fails to consider bedrooms and studies and extra living and pools etc. and also if the house you look at is far superior or inferior to the average house in the immediate area.
in short - its a computer trying to do a human job - and whilst its arguable that computers do a job quicker and faster, they dont have the emotive capacity to incorporate that million dollar view into an otherwise cheap house that will drag the price right up.
my 2c worth.
take PT_Bear up on his offer...and learn how to appraise houses properly yourself.
The basically use the database to compaire factors of historical data against the property, such as property size, number of bedrooms and bathrooms. They also look at how much the area has risen in value since the last time that property was sold and apply that as well.
Like I said, it's a starting point, but you need to do the legwork yourself to really know the value of a property. The most useful part of the report is for the sales summary of other properties in the area, not the price of the property you're actually looking at.
Like I said, it's a starting point, but you need to do the legwork yourself to really know the value of a property. The most useful part of the report is for the sales summary of other properties in the area, not the price of the property you're actually looking at.
Yes, they have RP Data with it's reports and subscription (which is pure gold and worth it IMO).
Then they have recently launched www.myrp.com.au where you can log on and "claim" your properties (need to know lot no. etc.), fill in the fields (ie. bedrooms, bathrooms, garage, year built, land size etc) and it will spit out the estimated value of your property. It's free at the moment but I believe they will be charging for it in the future. I did it as a matter of interest, and whilst it does seem relatively accurate for a few I tipped in (some good, some undervalued), it does have a time lag, and as others have mentioned - doesn't take into account any distinguishing characteristics of individual properties.
I just registered for myrp . I am very happy with all of the valuations for the 3 properties. I have $924,834 in estimated property value... Very happy with that!
Cool MM!
People just need to be aware not to take this as 100% accurate. Some of the values I've tipped in are about right, whilst others are still undervalued (going by actual sales/agreed contracts, not just my opinion), so it still pays to view with caution.
Conversely I can see it going the other way too, if certain micro markets have sharp corrections - the values will also take a while to accurately display the drop.
Don't forget, by the time RP Data get the stats into the system, they are already at least a month or more old from when the price was agreed to between the vendor and purchaser (best case scenario), which in a faster moving market can make a difference. Then throw in the variables of different properties on top.
We had our PPoR valued about 3 months ago at $355,00 (RPD)$382,152
Duplex at Agnus water very disappointing $260,000 3 months ago and we paid $275,000 (RPD) $365,866.
And the house at Corio we settle on the 14th we paid $157,000 and
(RPD) is $176,816.
So I am over the moon with that!!
Duplex at Agnus water very disappointing $260,000 3 months ago and we paid $275,000 (RPD) $365,866.
And the house at Corio we settle on the 14th we paid $157,000 and
(RPD) is $176,816.
So I am over the moon with that!!
Haven't used RPData or Residex, although have used APM. Not sure how they differ in their methodologies etc, however, have noticed when I ordered a report on a property that I subsequently bought in Frankston South, which is postcode 3199 that it significntly undervalued the property (or maybe I overpaid ). Now 3199 covers Frankston, Frankston Heights, Frankston South & Karingal and there are some significant variances in prices across these areas, even though it is one postocde, so I realised only after paying the $60 (?) that the report's data may not be as accuarte as it should be.
I did another more recently for postcode 3181 (Windsor, Prahran - Mel) and found the price to be a bit more realistic. Not as much variability on the properties across these areas, for prices for a specific property type. Worth bearing in mind.
). Now 3199 covers Frankston, Frankston Heights, Frankston South & Karingal and there are some significant variances in prices across these areas, even though it is one postocde, so I realised only after paying the $60 (?) that the report's data may not be as accuarte as it should be.I did another more recently for postcode 3181 (Windsor, Prahran - Mel) and found the price to be a bit more realistic. Not as much variability on the properties across these areas, for prices for a specific property type. Worth bearing in mind.
What a difference a week makes!!
I just checked my RPdata again and this was the result.
Agnes is down from 365,866 to 295,442 (paid $275,000)
Corio is down from 176,816 to 165,790 (Paid $157,000)
Gladstone is up 382,152 to 385,905. (Paid $250,000)
So I went from $924,834 down to $847,137.
Anyway, I guess it will always go up and down like that, as is the nature of RE.
I just checked my RPdata again and this was the result.
Agnes is down from 365,866 to 295,442 (paid $275,000)
Corio is down from 176,816 to 165,790 (Paid $157,000)
Gladstone is up 382,152 to 385,905. (Paid $250,000)
So I went from $924,834 down to $847,137.
Anyway, I guess it will always go up and down like that, as is the nature of RE.
Rp data estimated $347,374
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2006781743
The property sold for $420,000 this weekend just gone.
So you can see a fairly large difference there.
Where a property in Macleod was valued recently for $360k and RP data estimates it at $480.
Its quite inaccurate i believe in some areas but still a useful guide to have
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2006781743
The property sold for $420,000 this weekend just gone.
So you can see a fairly large difference there.
Where a property in Macleod was valued recently for $360k and RP data estimates it at $480.
Its quite inaccurate i believe in some areas but still a useful guide to have
I'm confused about their methods. Joint myrp yesterday and "claimed" my properties. Valuations looked pleasing, on the upper end of what I have guessed with current increases (all in Brisbane).
Then checked in today to look at something and one house has gone down 40k and the other up 40k - in 24h!!! That looks more like random number picking than reliable valuation! The house that went up is relatively easy to value as it is in an area with many similar houses on similar-sized blocks so I have no idea where the flactuation would come from. Mmh, looks like a nice gimmick to suck you into becoming a paying member but I wouldn't want to base my valuations on their estimate...
kaf
Then checked in today to look at something and one house has gone down 40k and the other up 40k - in 24h!!! That looks more like random number picking than reliable valuation! The house that went up is relatively easy to value as it is in an area with many similar houses on similar-sized blocks so I have no idea where the flactuation would come from. Mmh, looks like a nice gimmick to suck you into becoming a paying member but I wouldn't want to base my valuations on their estimate...
kaf
Their estimation method is based on statiscal spread only, so it's not possible at all to get pinpoint accuracy to each individual property. That's why properties cannot be traded like sharemarket, price too volatile and each property is unique in its land size, living area, location, etc. Imagine if you could "float" all your properties on a trading platform.. the price range that a property moves within will definitely rip your heart out if your heart isn't strong enough!!
Guys... I pinned my property and claimed it.
But it's very bizarre. The picture is incorrect, it's showing the unit that is behind it (subdivided block) and not my house which is the original house on the land before division. The date of last sale is correct though.
So ... it must have overvalued it?!? Because i just made $200k and surely that can't be right.
But it's very bizarre. The picture is incorrect, it's showing the unit that is behind it (subdivided block) and not my house which is the original house on the land before division. The date of last sale is correct though.
So ... it must have overvalued it?!? Because i just made $200k and surely that can't be right.
