Everything you need to know about our Property profile tool

You may have noticed that a number of major real estate portals now have price estimates for properties. We’ve seen an increase in user demand for this information which is why we have introduced Property profile. Property profile gives users additional information about a property, including Capital Values, sales history and an estimated market expectation. This can all be found at realestate.co.nz/profile. To help you understand how this estimated market expectation is calculated, we’ve put together a list of some frequently asked questions.

Why are there price estimates? 

With many major real estate portals now using price estimates, we have seen user demand for this feature locally and worldwide. To meet the demands of these users we have created Property profile to house this information. 

How does it work?

When you search for any address in New Zealand and see a profile for the property, it will consist of information around Capital Values, sales history and estimated market expectations. Technology has given us the ability to analyse large sets of data to reveal patterns and trends. We use data from third party sources and our own, to create algorithms that predict an estimate of the price range a property will sell within. 

How accurate is the information? 

The accuracy of the algorithm can depend on how recent the data is, what the data sources are, how many sales there have been near the property and how similar the property is to others around it. The gap in the price band will determine how much information is available for the property. The closer the gap, the more information we have to pull from.

How can an algorithm know what a property can sell for?

There are always factors an algorithm can’t take into account, such as sudden surges up or down in demand, or abrupt changes to the economic climate or financial regulation. In these cases, it may take a while for new data to affect the predictions. Then there’s how appealing a brand-new bathroom or retro colour scheme is compared to a similar house for sale around the corner. For these reasons, the figures shown are just estimates and are starting points for both buyers and sellers doing market research.

Do you still have questions? If you’d like some specific data on a property, or you believe data on a property is incorrect, please email us at profile@realestate.co.nz and our team will assist you.