Online Property Valuation Tools in NZ: Pros, Cons, and Insights
5 September, 2023 | Kandice Reilly
In the modern era, technological advancements have revolutionized the way we approach various aspects of our lives, and the real estate industry is no exception. Home buyers and sellers in New Zealand now have a plethora of online tools at their disposal to assist them in estimating the value of a property. These tools provide valuable insights and information that can help individuals make informed decisions when it comes to buying or selling a home.
But what are the limitations? How seriously should you take these online assessment tools when evaluating the value of a property in New Zealand? In this article, we’ll delve into some of the most popular online property valuation tools available in New Zealand and how they can be used effectively.
Limitations of the online tools
One of the key things to remember about all of the online valuation tools, is that they are working with limited information and that the information provided is just an estimate. None of the estimates generated by these tools are based on an in-person inspection of the property or in-person knowledge.
A large part of a property’s value can come from things like the quality and condition of the property, the type and age of chattels such as appliances, floor coverings and window treatments. Does the roof need re-doing? Do the piles need re-piling?
Even intangible things like the indoor-outdoor flow, amount of sunshine, whether the current décor is popular or “on trend” or what the neighbours are like can be considerable factors in whether someone will want to buy a property or not, and how much they will pay for it. All of these factors (and more) are not covered by any of these online valuation tools.
The other limitation for the online tools can be the age of the information they’re using to determine their calculations. If a property was last sold a long time ago, a lot about that property could have changed – and that wouldn’t factor into the calculations.
Some of the online valuation sites are not very transparent about where their data comes from, and how accurate it is.
In our experience, sometimes the estimates from these tools can be similar to the price that is paid for a property, but often it is vastly different and can go either way in terms of whether the price sells for higher or lower than the estimates provided.
TradeMe Property Estimates
TradeMe, a well-known online marketplace, offers a property estimation tool that provides users with an approximate value for a property based on recent sales data and market trends. While TradeMe estimates can be a useful starting point, it’s important to remember that they are automated calculations and may not always accurately reflect the unique features and condition of a specific property. Home buyers and sellers should consider TradeMe estimates as a rough guideline rather than an absolute valuation.
homes.co.nz
Homes.co.nz provides users with a comprehensive overview of a property’s estimated value, recent sales history, comparable properties, and suburb insights. The platform uses a combination of algorithms and publicly available data to generate its estimates. While homes.co.nz can offer a more detailed analysis compared to other tools, users should still exercise caution and supplement this information with advice from property professionals.
One Roof Property Valuation
One Roof (a subsidiary of NZME) offers a property valuation tool that takes into account a range of factors including recent sales, suburb trends, and property characteristics. One Roof also provides insights into the local property market, making it a helpful tool for both buyers and sellers seeking to understand the dynamics of a specific area.
Quotable Value (QV)
Quotable Value, also known as QV, is a widely respected name in the New Zealand property valuation industry. QV provides a range of services including property valuations, insights into market trends, and property reports. Their online tool allows users to access property valuations and sales information based on a database of property records. QV’s data is more comprehensive and reliable due to its access to official property transaction records, but it still has limitations.
Conclusion
Online property valuation tools have undoubtedly transformed the way home buyers and sellers approach the real estate market in New Zealand. These tools offer valuable insights into property values, recent sales data, and market trends. However, it’s crucial to remember that these tools provide estimates and general information. When making significant real estate decisions, it’s advisable to consult with experienced property professionals who can provide personalized guidance based on their expertise and knowledge of the local market conditions. Utilized effectively, online property valuation tools can be a powerful aid in making informed decisions, contributing to successful property transactions for all parties involved.
Your property decisions are among the most significant you’ll ever make, and the use of online valuation tools is just the beginning. To fully protect your interests and ensure a seamless property transaction in the dynamic New Zealand market, it’s imperative that you seek expert guidance promptly Take the next step toward success by reaching out to Kandice today. With her insights and personalized guidance, you can navigate the intricacies of the property market with confidence, ensuring your interests are protected every step of the way. Your future property decisions deserve nothing less.
Kandice Reilly
kandice.reilly@smithpartners.co.nz
09 837 6884
