How accurate are realAs property value predictions?
One of our realAs customers asked us about the realAs property value prediction accuracy. So we decided to share the answers with everyone.
You say you have algorithms based upon providing an ‘accurate’ representation of sales prices within certain parameters for buyers within the property market. Whilst I have seen the profiles and descriptions of the investors of this app, I’d really like to know the following;
1. How confident are you in the percentages you have given of variation between Real As and Real Estate.com?
realAs property value predictions are made in advance of auctions and private home sales.
Each week when home sale results become available the realAs property value predictions are compared with the home sale prices.
2. Even though you have many years of experience within this Industry, can you allow for ALL variables with regards to the accuracy in your variations to an actual sale price?
The realAs team is experienced, and has spent over four years developing the realAs home price prediction algorithm.
It helps to know how realAs predicts prices. realAs is based on one simple truth: It’s buyers, not real estate agents, who decide how much to pay.
That’s the key. 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 home price algorithm).
It’s first-in-the-world accuracy that has not been possible before.
3. How frequently do you modify/update your software to allow for fluctuations and changes in the market space? And how do you analyse these fluctuations and changes?
The realAs algorithm is “learning” all of the time. With every piece of new data supplied realAs home price predictions are refined. realAs customers can generate instant realAs home price predictions.
Whilst the realAs home price prediction algorithm is propriety – so we can’t tell you specifically how it works – we can share that it has successfully predicted home prices as different geographic areas across Australia have experienced changing economic conditions.
4. How sensitive and personalised are your ‘owls’ with regards to providing as accurate a prediction as possible within your given parameters to each specific property that appears?
realAs home price predictions are 5% off home sale prices on average – Australia wide including auctions and private sales. Almost 9 out of 10 of realAs predictions are just 10% off the final home selling price. Does your real estate agent, valuer or data provider get even close to that?
We provide regular comparisons of the realAs home price prediction accuracy by suburb and agent.
realAs home price prediction accuracy
5. As an individual who will purchase a property this year, is my experience with RealAs a failure if my purchase price does not land accurately within your nominated parameters?
Caveat emptor – let the buyer beware.
We would love you to pay less than the realAs home price prediction.
Take into account the overall realAs home price prediction accuracy above. We are yet to see another real estate data provider beat this level of accuracy.
Do not only rely on the realAs home price prediction, there are other real estate information sources which you should include in your research.
realAs home price predictions provide an aid to making decisions, but what you decide to accept – as in any advice you receive – is wholly your decision. You should undertake your own research and investigation before making or accepting an offer. (For example, we would always recommend obtaining your own building and pest inspection).
Seek appropriate independent financial advice.
6. I would ultimately like to know how much confidence you have in this software, and, as a purchaser of this App, how confident I should feel about your expertise in this industry as investors.
The accuracy of realAs home price predictions is self evident through our regular reporting comparing our performance to suburbs and agents.
Can you rely only on realAs? We’d love to say yes, but the answer is no. There are times realAs will be wrong. We believe that’s less often than anything else on the web, but you must still confirm realAs predictions and information for yourself.
How independent is realAs? Completely. We are not associated with any real estate agent or website or with anyone or any company which could present a conflict of interest.
Here’s what some of our customers had to say:
Happy home hunting!
Josh Rowe, realAs.com