Are online home appraisals accurate?
Our world keeps moving toward an online ecosystem. Is it any surprise that the home appraisal industry is following suit? Through advancements in technology and data harvesting, these online home value estimate companies have increasingly captured more of the market space and advertised themselves as a one-stop shop for all things housing. But can we give online appraisal companies our full vote of confidence for accurately estimating home values across the country? Let’s find out!
More data, more accuracy
Online home valuation companies rely heavily on local, state and nationwide housing market data collection to formulate their home appraisal estimates. Market data such as comparable homes, recent home sales, square footage, home condition and local community information are key factors that facilitate the online home appraisal industry. The better an online appraisal company is at collecting housing data, the more accurate and reliable its home value estimates will be.
The power of the comparative market analysis
Many of the more prominent online appraisal companies have taken a further step in competing with the local, in-person appraisal market by hiring licensed appraisers to complete in-depth comparative market analyses. This type of market analysis goes a step further than solely relying on computer-generated data collection by having a licensed professional analyze recent home sales, comparable homes and any recent community changes that might impact the home values in the surrounding area. The comparative market analysis provides a more narrow, pinpointed research-and-review approach to solidify the accuracy of the housing market data.
Appraisals for an ever-changing world
Online appraisal companies continue to improve and refine their home value estimates as new technological innovations are applied to their systems. Although in-person appraisals are beneficial when there’s limited home value data available, the appraisal industry continues to shift from in-person to online appraisal valuations as new data capturing systems and professionally licensed appraisers move toward working in the digital space.
Get help choosing the best appraisal method for your needs
Choosing between an online or in-person appraisal company to estimate your home’s value largely depends on your local area. Gateway Realty can apply its real estate knowledge and expertise to assist you in deciding whether an online or in-person appraisal option is right for you.