Pros and Cons of Using an Online Property Valuation Tool

Advantages and disadvantages of using online property valuation tools

24 Aug Pros and Cons of Using an Online Property Valuation Tool

If you’re thinking of selling your home, one of the first things you’ll want to know is how much your property is worth. With so many online property valuation tools, it can be easy to get quickly excited if it’s proposing that your home is worth more than you initially thought. Read on to discover some of the pros and cons of these online valuation tools.

The internet contains a wealth of information for both buyers and sellers, so it is worth taking your time and doing your research, so that you’re not disappointed further down the line.

Pros of online valuations

  • At the very start of your selling journey, online valuation tools can give you a great starting point when looking at your homes market value. Most online valuations are free and you can input the data about your home at a time that suits you, without even having to pick up the phone to speak to someone, or having to leave the comfort of your home. You should however, only take these valuations as a ‘guide’ at the outset, to enable you to help guess how much you may be able to afford to spend on a new property. An estate agent will be able to give you a better idea of how much the property you’re looking to sell is likely worth and they’ll also have knowledge of how much other similar properties in your area have recently sold for.
  • They can also be a good reference tool for buyers as they’ll be able to be able to view house sold prices of similar properties in the area which they are interested in buying and compare them with properties that are currently on the market.

Cons of online valuations

  • Each website valuation tool calculates the figures based on a different set of formula so each valuation will vary slightly. For this reason, they should only be used as a guide to give you an idea of your homes currently market value. Hiring a professional who has local knowledge will be able to give you a far more accurate valuation.
  • It is also important to remember that the figures these online valuation tools are automatically generated using historic sale information and therefore won’t take into consideration if any substantial work had been carried out at the property to add value since the last recorded sale price, that could affect the potential market value. If there is a huge range of types and designs of properties within the same area, this can also affect the valuation provided, so there are so many ‘real life’ variables that an auto generated tool cannot take into consideration.

Online valuation tools vs a professional valuer

When carrying out a property valuation, a qualified RICS (Royal Institution of Chartered Surveyors), chartered surveyor will apply their expertise and knowledge of the local area and current property market. They will take into account all the factors that an automated platform cannot, providing you with a far more reliable valuation.

In summary, online valuation tools can be great as a starting point to give you a guide price when at the start of your journey and want to know how much you may be able to use from the sale of your property to put towards your new home. As results vary so much from website to website, don’t solely rely on the first valuation you do and you need to use a professional valuer for the purposes of putting your home on the market and for mortgage/lending purposes if you are looking to buy.

Always listen to the professional advice of a surveyor or a valuer from a local estate agent as this is likely to be a more realistic property value. Your home also may also take longer to sell if your asking price is too high or are unwilling to negotiate.

If selling, you’ll also need a Home Report to be carried out. We are the leading providers of Home Reports across Scotland, carrying out Home Reports at a time convenient to you. We work early mornings, evenings and weekends too and are competitively priced. Give us a call on 0131 608 0175 or email us at info@homereportcompany.co.uk

 

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