What is the HomesEstimate?
The HomesEstimate is an algorithm used to calculate the estimated market value for an individual home. It is not a formal valuation, but a starting point in determining a home’s estimated value. The HomesEstimate is calculated using an algorithm and physical attributes of the property like its location; land area, house size, the number of bedrooms and bathrooms it has, plus rates information all provided by the local council records.
How accurate is the HomesEstimate?
The HomeEstimate’s accuracy depends on the availability and accuracy of council and sales data in an area. Check out the table click here under ‘How accurate is the HomesEstimate?’ The table shows the accuracy of the HomesEstimates in comparison to subsequent sales values throughout the last 3 months.
How often is the HomesEstimate updated?
The HomesEstimate is refreshed at the start of each month. The number of transactions in a geographic area affects how much we know about the market values of homes in that area. The more transactions equal more usable data and improves the accuracy of the HomesEstimate.
Who uses the HomesEstimate?
Property hunters and homeowners use the homes.co.nz website to check out the HomesEstimate for their own property or properties that they are interested in purchasing, so they are up to date on what’s happening in the real estate market, prior to purchasing or selling a property. Real estate agents may also refer to the HomesEstimate prior to appraising properties so they are prepared for conversations with vendors who have undertaken their research on homes.co.nz prior to the agent’s visit.
The Homes Estimate is too high or too low
We are aware that many buyers and sellers check out the HomesEstimate prior to contacting an agent. Because the HomesEstimate is based on an algorithm with no onsite visit to assess the property it may be out of line with the current market value. Real estate agents are the industry experts and their property appraisals on subject properties provide the most accurate market value on a property.
How do I contribute to the HomesEstimate?
Real estate agents are invited to submit their appraisal range for a property, along with the subject property’s address, to email@example.com, or through the Premium Agent app for the recalculation of the algorithm.
The contribution will be weighted against the current HomesEstimate on a case-by-case basis, to ensure that a more accurate HomesEstimate is achieved.
Contributing to the HomesEstimate may well help real estate agents with the marketing of their listings, as the HomesEstimate is viewed by potential buyers and the agent contribution is more likely to enable the newly generated HomesEstimate to be in line with the current market value.
homes.co.nz is the only property portal that allows agents to contribute to the algorithm.