Technology has had a profound impact on the real estate process. From viewing properties online to signing contracts electronically, technological advances have streamlined and improved many of the steps you once had to take.
Buyers can now access an incredible amount of information about potential properties from the comfort of their own homes. Sellers can list their homes quickly and easily and track the progress of their sales in real time. While the use of tech has made buying and selling property faster, easier, and more efficient than ever before, questions remain about the accuracy of automated home valuations. Consider some of the facts.
Algorithms Missing Exceptional Factors
It's no secret that home valuations can be tricky. Many factors go into determining the value of a home, from the location to the condition of the property. However, one of the biggest challenges in home valuation is taking into account all of the special features and remodels that a property may have. Computer algorithms often miss these crucial details and can focus on the wrong data or outcomes, leading to inaccurate valuation.
For example, let's say you have a home with a beautiful view of the mountains. This factor would likely add value to your property, but it's something that a computer algorithm might not consider. Similarly, if you've recently remodeled your kitchen or added a pool to your backyard, these improvements would boost your home's value but might not show up in the valuation. In other words, when it comes to valuing a home, remember that there's more to consider than just the basic facts. A professional opinion is always best if you're ever questioning a home valuation.
Programs Relying Too Much on Patterns
Computer algorithms may not always be accurate when valuing a home because automation often relies excessively on patterns to generate a value. However, many components can affect a home's value that patterns may not capture. For example, the condition of the house, the location, and the economy can all impact its value, meaning algorithms may sometimes make mistakes that an experienced realtor would not.
Another way online valuations can veer from reality is when the program uses averages of price per square foot for all homes in the same zip code to figure valuations. Neighborhoods and amenities can drastically alter the price of a property. The price for a gorgeous home next to a dilapidated lot will suffer, whereas the algorithm may over inflate the cost of the derelict property.
Computers also do a poorer job of understanding how world conditions can affect the real estate market. Supply chain issues and buyer demand can swing home prices in a short time. Interest rates affect buyers' willingness and ability to purchase homes. A seemingly minor adjustment in points can raise monthly payments by hundreds of dollars and put a house out of range.
Buyers and Sellers Have Access to Reliable Guidance
Navigating the real estate market to negotiate a fair price for your home requires skill and finesse. Online estimates can be a fine starting point, but buyers and sellers need the human touch for adequate assistance.
Find reliable guidance through the process by reaching out to the top-notch team at Chapel Hill Realty Group at (919) 942-4149, today!