Online property valuation tools are convenient ways to give buyers an overview of the prospect property’s worth.

But, is it all that accurate and credible?

The Real Estate Institute of New South Wales (REINSW) has questioned the accuracy of these tools as they provide prospect buyers with inaccurate information, as some property valuation tools use variable information, such as median prices, which can be misleading for a small sample data. There are also several details that are not taken into account which are vital in property valuation. The valuation information is often backed up by different lenders and often, each one has their own calculation on the value of the property.

Property valuation tools and serviceability calculators should be used with caution as there are several details in play when valuing property. According to the Australian Government website, these data should be reviewed and recalculated annually, as the property value changes on a yearly basis. Property sales in the vicinity and property improvements should also be considered in the calculation, and these are not constant numbers.

REINSW has called for property investors to be wary on these calculations. Consulting a financial planner would still be the best option as they can cater to any inquiries and provide customers with in depth information regarding a property’s valuation.

Read more about this on The Australian Broker Online website.

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Dorian Traill is the current Director of Grand Capital Finance Group and Fountain Property Group. He specialize in home loans for people as well as helping them build wealth through quality investment properties that ultimately lead to long term financial freedom.