Many have been interested in how our digital valuation tool works and what our valuations are based on. Therefore we want to answer the most common questions with this post.
How does the digital valuation tool work?
Our valuation is based on the characteristics of the apartment; for example the address, size, which floor in the building, condition, plot and year of construction. Based on this information the tool generates a price that most likely fits your apartment.
How precise is this estimated value?
The margin of error is about 5% for our tool and describes how precise the estimated value is and how much it can differ. Prior to selling you will always do another valuation with our broker before we put the apartment up for listing.
Will the estimated valuation give a recommendation for listing price or the estimated market value?
Our valuation is based on actual selling prices of sold apartments in the area. No one will be able to tell the actual market value before the apartment is sold though.
What about renovations and the economy of the housing cooperative?
The valuation tool does not consider detailed information about the properties at the moment. Large scale renovations such as re-plumbing are calculated based on the year of construction. Previous renovations are reflected gradually as data from new sellings are collected. The economic situation of the housing cooperative is reflected indirectly.
How come the valuation does not match my own perception?
It’s quite common that the perception is based on your last selling or the price a neighbor recently sold their apartment for. It’s important to consider the differences between apartments and the many other factors that can regulate the valuation. Condition of the apartment, changes in price index and random price varieties over time are all examples of things that play a part in the valuation. Our valuation tool is built on a mathematical model that considers those factors by thoroughly generalizing the characteristics, price development and the location to give you a reliable estimation.
What describes the price range of the valuation?
The market and prices are of course regulated by the general demand, but the pricing may also depend on factors such as a well maintained housing cooperative and random variations. The range of the valuation also describes the reliability of the valuation itself. The broader the range, the less detailed is our estimated price.
For which types of residences and in which areas does the evaluator function?
Our valuation tool works for all tenant-owned apartments in Sweden. It works best in areas where the market is active and many transactions have been made.
Test the evaluator yourself.
Is it something you’re still wondering about? Contact us by chat or by emailing to kundservice@blok.se
