Are online reviews reliable?

The technology behind it: How the computer rolls the dice to determine the price

To assess whether an online property valuation is reliable, one must understand how it works.

The magic word is "hedonic method".

• The principle: The online property valuation compares your property with thousands of actual property transfers in Switzerland.
• The data: It looks for statistical twins. If a house in your neighborhood of similar size and year of construction sold for 1.2 million, the online property valuation uses this as a reference.
• The refinement: A good online property valuation also takes into account macro data ( tax rate , public transport connections) and micro data (noise pollution, view).

The more comparative data is available, the more precise the online property valuation . Therefore, online property valuation often works better in urban areas like Zurich or Basel than in remote Alpine valleys where there are hardly any transactions.

When is an online property valuation reliable?

The reliability of online property valuations depends heavily on the type of property.

1. The standard case (high reliability)

You own a 4.5-room condominium in a suburban community. Built in 2010, standard finish.

Here is the online property valuation Extremely reliable . There are hundreds of similar apartments. The statistical deviation of such online property valuations is often less than 5%. For an initial price estimate, an online property valuation is invaluable.

2. The single-family house (Medium reliability)

This is where it gets more difficult. Does the house have a new heat pump? Is the garden overgrown?

An online property valuation does ask about the condition ("good", "fair", "poor"), but these entries are subjective. If you overestimate your own house, the online valuation will also give you a price that's too high (" garbage in, garbage out"). Nevertheless, the online property valuation still provides a solid range.

3. The collector's item (Low reliability)

A converted 18th-century farmhouse or a luxury villa with gold-plated faucets? Online property valuations usually fail in these cases.

The algorithm finds no comparable properties. Individuality skews the statistics. In such cases, an online property valuation can only provide a very rough guideline and is in no way a substitute for an on-site expert.

The motives of the providers: Whom can you trust?

Not every online property valuation is neutral. It's important to know who is behind the tool.

• Banks use online property valuations for risk assessment. Their results are often conservative (cautious) because they finance on the lower of cost or market principle. A bank's online property valuation is often lower than the market price.
• Real estate agents often use online property valuations as a "lead magnet" to get your contact information. Sometimes the online valuation is slightly inflated ("flattering price") to motivate you to sell your house through that agent.
• Independent platforms: Here, data quality is paramount. An independent online property valuation attempts to accurately reflect the market, without ulterior motives.

heyloft.ch: Transparency in the black box

Since many users are unsure whether their online property valuation is neutral or sales-driven, new approaches are needed. This is where heyloft.ch positions itself as an innovative solution.

heyloft not only offers a rigid online property valuation , but also uses the digital assistant "Loft" .

• Context, not just a number: Loft provides the context for your online property valuation . It explains why the value is what it is. Is it due to the location? Market trends?
• Plausibility check: Loft helps you question online property valuations . If real estate agent A promises you 1.5 million, but Loft's independent online property valuation only shows 1.2 million, this warns you against false hopes.
• Independence: Because heyloft acts as your assistant, the online property valuation is free from conflicts of interest. It's a tool for you, not against you. Such an independent online property valuation is the best starting point for any real estate decision.

The limitations of online property valuation

online real estate valuation has blind spots.

• Building structure: The online property valuation does not detect the crack in the foundation.
• Rights and encumbrances: A right of way for a neighbor or an easement reduces the value. An online property valuation usually cannot take this into account.
• Emotions: A buyer falls in love with the view and pays a "collector's price." Online property valuations calculate rationally and often fail to reflect this emotional premium.

Therefore, the following applies: An online property valuation provides the "fair market value" (reason), not necessarily the "selling price" (market reality).

How to use online property valuation correctly

Use the online property valuation as a compass, not as a law book.

• Don't just do one online property valuation , compare two or three providers.
• Be honest when entering information about the property's condition. If you cheat on the online property valuation , you're only cheating yourself.
• Use the online property valuation as a tool to support your arguments with banks or buyers. A printout from a reputable online property valuation builds trust.

Conclusion

Are online valuations reliable? Yes, for the vast majority of properties in Switzerland, a reputable online property valuation delivers a surprisingly accurate result. It is the most efficient way to quickly determine a realistic price range. The algorithms used in online property valuations are now so advanced that they are often more accurate than a layperson's gut feeling.

However, in complex cases or legal disputes (divorce/inheritance) , online property valuation does not replace an on-site expert. It is a tool for orientation. Those who use the results of an online property valuation as a solid foundation and combine them with common sense are best prepared.

If you are looking for an independent, data-driven and transparent assessment that helps you truly understand the market, it is recommended to use Loft 's innovative online property valuation and gain clarity.

Glossary

• Online property valuation : A digital, mostly automated determination of the market value of a property based on algorithms and comparative data.
• Hedonic method: The statistical procedure behind almost every online property valuation , which calculates prices by comparing characteristics (location, size) with actual sales.
• Range: The price range (from... to...) that a reputable online property valuation provides to reflect statistical uncertainties.
• Loft: The AI-powered assistant from heyloft.ch, which enables an interactive and independent online property valuation .
• Standard object: A property (e.g., condominium) for which there is a lot of comparative data and for which online property valuation works most reliably.