Property Price Tool RealAs Helps Buyers Beat Underquoting

HOUSE PRICE UNDERQUOTING IS A FUNNY BUSINESS....

Underquoting in the real estate industry affects buyers across Australia. The practice involves intentionally 'baiting' potential home buyers with lower bait prices when in fact the reserve price or expected sale price is above even the top of the estimated selling price range as quoted by the real estate firm.

TIME TO GET REAL

That is where RealAs can come in handy. 

RealAs is a very innovative mobile and desktop valuation tool, which aims to help buyers get a much more realistic view of the likely selling price of an on-market property.

Set up by a trio of leading Melbournites the application based on an algorithm developed by RMIT University, and has been designed to estimate the selling price of any residential property in Australia with a high degree of accuracy.

The RealAs brains trust:  Hawthorn Football Club Chairman Andrew Newbold, Josh Rowe and buyers agent David Morrell, directors of the RealAs property app. Photo: Josh Robenstone / Getty Images

The RealAs brains trust: Hawthorn Football Club Chairman Andrew Newbold, Josh Rowe and buyers agent David Morrell, directors of the RealAs property app. Photo: Josh Robenstone / Getty Images

HOW DOES REALAS PREDICT PRICES?

It helps to know how RealAs predicts prices.

How RealAs is different is that it brings proven methods together in a new way — including crowd-sourced data (your own and other buyers' estimates) with machine learning and predictive computing (the RealAs algorithm).

It's first-in-the-world accuracy that has not been possible before.

The RealAs app:  the app in motion here, showing a search in Richmond. It has collated active and past results and can present them in a list or map form, for browsing through and seeing what the difference in quotes and actual realistic values.

The RealAs app: the app in motion here, showing a search in Richmond. It has collated active and past results and can present them in a list or map form, for browsing through and seeing what the difference in quotes and actual realistic values.

HOW ACCURATE IS REALAS?

A lot more accurate than most people expect. We have listened to hundreds of buyers everywhere from the streets outside homes that are open for inspection to surveys on the web. Most tell us that they want to know how much a home will sell for within 10% of its actual selling price. RealAs does a lot better than that. Currently:

  • close to 90% of predictions are within 10% of sale price
  • the average RealAs prediction is within 5% of sale price (That includes private sales and auctions).

Other USEFUL data sources:

  1. Free reports: Onthehouse.com.au, Realestate.com.au and Domain.com.au have prior sale insights and links to property reports.
  2. Personal attendance: Being 'on the ground' attending similar auctions in your target areas will help you understand where the value in the market is and what to expect.
  3. In Depth Reports: Ask us for a complimentary Corelogic RP Data report on the property you are looking at. This is valued at $29.95, and includes comparable listings, comparable recent sales, suburb insights, and rental price estimates based on similar properties in the area.
  4. Full valuations: If you already have a mortgaged property, we can arrange a complimentary registered bank valuation to provide a full appraisal of your properties value in the current market, valued at $500.

Further reading


HOW WE SUPPORT CLIENTS

At Aspiire, we have supported clients who are looking to purchase a property, through:

  • Arranging valuations and valuation reports
  • Ensuring financial affairs are structured effectively
  • Providing pre-approval reports with your buying power
  • Arranging fully approved finance
  • Helping clients take proactive approach to building a property portfolio
  • Arranging value add services such as accounting, building and contents insurance, depreciation reports, and legal conveyancing at preferred prices.