New Tool Compares Home Prices to Similar Real Estate Deals
Translated & summarized from Bizportal by baba
The story in 6 lines · by baba
- A new Bizportal tool estimates property values by comparing them to similar real estate transactions.
- The tool analyzes sales within the same building, street, 400m radius, and city.
- It defines similar apartments based on room count and size variations.
- The analysis covers the last 12 months, extendable to two years if needed.
- Examples show price differences based on the scope of the comparison.
- The tool flags highly volatile price results when data is scarce.
Bizportal has launched a new tool designed to help individuals determine the market value of their homes or estimate the price of a property they wish to purchase. The tool analyzes real estate transactions within a 12-month period, extending to two years if insufficient data is available. It defines a similar apartment as one in a shared building, with a difference of up to one room and a size variation of up to 20%.
The tool operates by examining four concentric circles of comparable sales, starting with transactions in the same building, then moving to the same street, then to nearby plots within a 400-meter radius, and finally to sales within the entire city. This tiered approach provides a range of real transaction prices, with larger sample sizes offering greater price validation.
Users input the locality, street, building number, number of rooms, and area, with an option to add a desired price. The tool then displays the percentage of similar sales that closed at a lower price per square meter, without explicitly stating whether the price is too high or too low. A scatter plot visualizes all prices per square meter, and a separate tab details individual transactions with addresses and distances.
Examples illustrate the tool's application: In Tel Aviv, a 75-square-meter, three-room apartment on Ibn Gabirol 100 was compared to 14 transactions on the same street. Over two years, only four similar three-room apartments were found, yielding a price range of 4.4 to 5.19 million shekels. A comparison for the entire city resulted in a lower range of 3.69 to 4.72 million shekels, representing a 10% to 19% decrease.
In Haifa, at Herzl 20, 39 similar transactions within the city originated from the same plot, likely a contractor's project, at approximately 13,400 shekels per square meter. After limiting each plot to three transactions, the median price rose to about 20,100 shekels per square meter, with a price range of 1.21 to 1.84 million shekels for a 75-square-meter apartment based on 131 transactions.
In Jerusalem, a 95-square-meter, four-room apartment on Gaza 10 was compared to 179 transactions, resulting in a range of 2.72 to 3.55 million shekels, with an additional 118 similar transactions excluded due to plot limitations. In Kfar Vradim, only nine similar transactions were found in the entire locality, with a median price of about 16,300 shekels per square meter. A listed price of 2.1 million shekels was higher than all comparable sales, which the tool flagged as highly volatile. In Rosh Pinna, at Ha'Horesh 1, only four transactions were found across all circles, and the tool provided no estimate.