Learn how estimated property value is calculated
Subodh M
Last Update één jaar geleden
Estimation:
The estimated cost is determined by taking the most recent property sale price (not the fractional token premium, but the actual sale price of the entire property where the deed/title has transferred) and applying the rate change between subsequent HC (HouseCanary) price estimates each time a new HC report is available.
You can find the latest HC report for each property in the property archives folder.
Philosophy:
It's important to note that the Fair Market Value (FMV) we provide is not equivalent to the estimated value from the HC reports. While HC provides reliable reports, they are still estimates.
The true value of a property is what it can actually be sold for on the open market. So, if the HC at the time a property was closed on our site was $200,000, but the property was actually purchased by our clients for $210,000, then the true value of the property isn't the estimated value of $200,000 but rather the actual contingent value (where the deed exchanged hands) of $210,000.
Therefore, it wouldn't make sense to indicate that the property immediately decreased in value if the next estimated value from HC was $205,000. It seems reasonable to use the rate change from each subsequent HC estimate relative to the previous report and apply that change to the last estimated value.