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Property Appraiser Little Rock AR - Little Rock AR, property appraiser, Little Rock AR appraisals, Little Rock AR property appraisal, Little Rock AR property worth, Little Rock AR appraiser
A Thing of Value? Online Appraising

by Peter G. Miller

I've been looking online at the value of real estate and the process has been illuminating -- arguably not accurate or especially useful, just illuminating.

If you want a satellite photo of a home, there's no shortage of locations that can provide such art, much of which is excellent. If you want a street map, that too is easily found online.

But when it comes to figuring out the market value of a property -- the magic question of how much to pay or how much to accept -- a recent look at online valuations was wildly disappointing.

For one property I checked the value is some $90,000 below the price paid last summer. Everyone seems to know the number of baths as well as the size of the property, but no computer seems able to fully value a home that backs up to creek or has a hot tub on the deck. For this, apparently, you need human eyes.
Then there is the Cape Cod which sold last year for $485,000 and now, says the computer, is worth a mere $429,000. This would no doubt amaze the new owner, an individual who has beautifully remodeled the house, landscaped the entire property and lives in a ZIP code where typical home prices increased $95,000 last year.
Lastly we come to a home which is allegedly worth $509,000. This seems unlikely in a ZIP code area where home values rose by an average of $68,000 in 2005 and nearby homes on the same street have been selling for $550,000 and up.
As much as computers are to be applauded, the invisible hand of automated valuations seems remarkably unsteady. Suggesting for one property a range of possible prices from $317,580 to $508,849 is useless; no seller will accept the lowest figure and no buyer will be enticed by the highest.

While it's entirely possible to have statistics regarding past sales, lot sizes, property taxes and other objective measures, when it comes to valuations I'll stick with local brokers and appraisers.

This is not to say at some distant point in the future online valuations won't improve. Software and formulas will undoubtedly progress and online sites will have access to more sale information on a more-immediate basis. In addition, public feedback will be encouraged as a correcting mechanism. This is all to the good.

Still, when it comes to buying and selling real estate I remain pro-human.

The issue is not that the Internet lacks value or utility, rather there are some things beyond even the powers of computerdom.

How do you value a view? Sounds silly, but if you look at the photos for 100 listings it's instantly obvious that some properties are more attractive and valuable than others -- at least to people.

To make matters more complex, whatever it is that constitutes "value" in real estate is a mix that differs among individuals. Not all homes with four bedrooms and 2.5 baths are created equal, thus the rush to buy some homes and the hurry to get away from others.

Valuations are part numbers and part mystery. I have little doubt that one day c...

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