I can PM you my views but they are not for public consumption - they know who I am and where I work
Hi Propertunity,
I'd like to know too pls, could you PM me as well?
Thanks,
Mary
Pricefinder vs RP Data
- Thread starter knightm
- Start date
Hi Propertunity,
I'd like to know too pls, could you PM me as well?
Thanks,
Mary
I too would like to receive this ever-more-popular PM!
And I'd like to know what people's views on Residex are? I bought a report from them for my recent IP purchase and was pretty happy with it.
JB
And I'd like to know what people's views on Residex are? I bought a report from them for my recent IP purchase and was pretty happy with it.
JB
Sent to MSL, James Bond and rob148.
I used rpdata last week for a property that i was interested in at Granville. I thought the asking price of 500K was too high - about 40K to 50K overpriced.
RPdata valued it at 521K!!! So that was a complete waste of my hard earned $29! lol
I then spoke to a local real estate agent who said that he thinks the property is worth around 450K.
RPdata valued it at 521K!!! So that was a complete waste of my hard earned $29! lol
I then spoke to a local real estate agent who said that he thinks the property is worth around 450K.
I don't use Pricefinder or RP for valuations. Most people i have spoken to agree they are VERY elastic. I want to see sales histories on individual properties and sales results for suburbs. These will help you form your own opionion of value.
We use Residex a lot through our systems, and have done for approx 10 years
I dont mind stating the facts.
We dont act in reliance of the statistical data produced without a fair bit of on the ground intell, to do so would be simplistic and immature.
The vast majority of these systems do rely heavily on statistically based models, some of which are more valid at different times of the market cycle.
When the markets are flattish, the actual $ mark position is usually quite reliable.
At the moment, in some states and cities the vals estimate can be out 10 to 15 % to what valuer x will mark things at.
This isnt entirely the val systems issue, but is in part, due to the same elasticity that valuers can portray if the product being valued isnt "cookie cutter" stock
Melbourne is a good case right now. There are some valuer groups that have a more pessimistic outlook and are valueing "ahead of the market" of the current softening environment.
I appreciate that settled sales data can be 90 days plus old, but I cant explain how the same property with one group is at 1475 with one and at 1675 with another........AND the comps used are somewhat similar, and the client's estimate was 1700 k and residex was on the money at the higher end.
The REAL power in Residex systems is NOT the CMA result , its the mix of the 5 tests in the CMA used, the capacity to adjust the input a little ( for eg reno since last purchase) and running a separate property sales report, and an LGA / suburb report.
Residex does NOT "value estimate " the property by using medians for the burb.........it is ONE portion of the equation.
Please note that if you are using "brand x" tools at nil or close to nil price, dont expect a tight val range result that is actually close to the mark.
That would be regarded as Naive ?
Finally, dont expect for one minute that the report you buy replaces a "valuation" it does not, and is not meant to.
ta
rolf
ta
rolf
I dont mind stating the facts.
We dont act in reliance of the statistical data produced without a fair bit of on the ground intell, to do so would be simplistic and immature.
The vast majority of these systems do rely heavily on statistically based models, some of which are more valid at different times of the market cycle.
When the markets are flattish, the actual $ mark position is usually quite reliable.
At the moment, in some states and cities the vals estimate can be out 10 to 15 % to what valuer x will mark things at.
This isnt entirely the val systems issue, but is in part, due to the same elasticity that valuers can portray if the product being valued isnt "cookie cutter" stock
Melbourne is a good case right now. There are some valuer groups that have a more pessimistic outlook and are valueing "ahead of the market" of the current softening environment.
I appreciate that settled sales data can be 90 days plus old, but I cant explain how the same property with one group is at 1475 with one and at 1675 with another........AND the comps used are somewhat similar, and the client's estimate was 1700 k and residex was on the money at the higher end.
The REAL power in Residex systems is NOT the CMA result , its the mix of the 5 tests in the CMA used, the capacity to adjust the input a little ( for eg reno since last purchase) and running a separate property sales report, and an LGA / suburb report.
Residex does NOT "value estimate " the property by using medians for the burb.........it is ONE portion of the equation.
Please note that if you are using "brand x" tools at nil or close to nil price, dont expect a tight val range result that is actually close to the mark.
That would be regarded as Naive ?
Finally, dont expect for one minute that the report you buy replaces a "valuation" it does not, and is not meant to.
ta
rolf
ta
rolf
in general, changing bedrooms should not have a large effect if any.
Like "arranging the deck chairs on the Titanic" .
I can only speak for residex, where with that system you can tweak things a little for increased land size, relative house size, white picket fence, and a good taste vs bad taste interior decorator etc. : )
The problem is, once you start playing with largely subjective data, like my land size is 20 % larger than median, it therefore follows that my vals should be 20 % higher..............markets generally dont work that way.
t
arolf
A little off topic, but its interesting you say that, because it leads to what I think is an interesting point.
Some indices use price per square metre as one of their many parameters for establishing value, where others also use the comparative rental return of the property to establish value.
Essentially that means in areas where there is a high demand for a particular type of property from a rental perspective, you are able to manufacture both increased rental returns in reality, but also capital growth within these indices (which when used by valuers becomes reality).
Not sure this makes sense the way I've written it, so as a simplistic hypothetical. Take two identical 2 bedroom houses in the same suburb. On the rental market as two bedroom properties they may fetch say $200 per week, however because of a high demand for 3 bedroom properties in this area, 3 bedroom properties can achieve $300 per week. Now, given the layout of alot of older Australian properties incorporates a double reception area, the smart investor could by simply putting up a stud wall and converting one half of the reception to an additonal bedroom increase the rental return by 33%. This increased rental return will then be taken into consideration by some indices to increase the property value, which when used by a valuer can turn into real capital gains.
Apologies if this still doesn't make sense or comes across a little simplistic, but it is a very real way of increasing return so thought I would try share.
RightValue where are you ?
I have found that rental rtn based vals ( capitalisation ??) doesnt apply much in the resi world.
Comp sales rule
A recent eg is a granny flat and house renting at 630 a week, valuer came back at 400 ........................whereas a plain house in the same burb with 380 rent vals at 370 ish
So maybe in the long term yields may have more of an influence on resi vals, but it will be diff to get comps around such specialist props
ta
rolf
I've sent you a PM with my views.
I'm new here Propertunity and come to this Topic(thread)late. But a Google Search directed me here. I was researching the Apps for RP Data AutoVal and the Comm Bank App for comments.
I might add I have used Pricefinder before.
Would you be so kind as to PM me your views also. Thanks in advance.
Dave
RP Data is a lot more reliable, I think, though that's not saying much. There are a lot of statistical anomalies in their data, I find. You'll scan through their newest data and pick out strange things like yield suddnenly increasing from 4% to 7% over a month.
Pricefinder seems to update their data more often, but it's just not as comprehensive, I think.
Pricefinder seems to update their data more often, but it's just not as comprehensive, I think.
I've sent you a PM, Dave.
Two of the more recent things that Pricefinder has developed is:
1. A basic intergration to www.nearmap.com which is much more up-to-date than google maps
2. Display listing of recent DA's applied for in the nearby area to the subject property you are researching - this I particularly like.
I've sent you a PM, Dave.
Two of the more recent things that Pricefinder has developed is:
1. A basic intergration to www.nearmap.com which is much more up-to-date than google maps
2. Display listing of recent DA's applied for in the nearby area to the subject property you are researching - this I particularly like.
Hi Propertunity,
Could I please get a PM too?
PMs sent to both you guys in Melbourne (although I only use NSW data currently and I'm unsure if my experience translates to other states).
