How to understand RP data a little better.

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Paterson00
Member
@paterson00
Join Date: 2013
Post Count: 65
January 28, 2014 - 9:13 am
Hi all,
I have been looking at RP data a little recently to see if I can educate myself some more and I would like to know if you are able to explain something for me. I did a search on the street I live in and it gave me a list of the houses, some of which were for sale. It has a green dot next to some and a yellow next to others etc. If I hover over the dot it tells you their confidence score. What is that refering to? Would that be the chances of the property selling at the given sale price?
For example..   http://www.myrp.com.au/street/wa/halls_head/6210/tennyson_avenue
Benny
Moderator
@benny
Join Date: 2002
Post Count: 1,416
January 28, 2014 - 11:59 am
Hi Patterson,
I clicked on your link and saw mostly green dots.   Most of the green confidence levels were up to +/- 10%. In one case though, even with a green dot, it should a conf level of +/- 14%, so not quite so confident about their estimate with that one.   And there was one Red dot, with a conf level of +/- 23%…….
Guessing, I would think the confidence levels would be high if they had dealings with the home and had seen it internally, etc.   Where they don't know what the inside looks like, or external signs point to possible issues, their confidence level of their $ estimate would be quite shaky – and fair enough too.
That is a good system. It beats taking their values as gospel, only to find they were "guessing" e.g. the red dot.
Benny
Freckle
Blocked
@freckle
Join Date: 2012
Post Count: 1,680
January 28, 2014 - 7:47 pm
Benny wrote:
That is a good system. It beats taking their values as gospel, only to find they were "guessing" e.g. the red dot.
Benny
They are guessing Benny. Anyone who says I think the price is X give or take 10% is talking a 20% spread. Might as well just pluck figures out of the air. These are gimmicky tools they invent to make it look like they know what the hell they're talking about when the reality is they're just collecting data and shaping it into a marketable product for all the Patterson's of the world to muddle over.
thecrest
Participant
@thecrest
Join Date: 2004
Post Count: 992
January 29, 2014 - 2:17 am
Hi all.
Any idea of the cost of subscription to RP Data per postcode or for all of NSW ?
It's a great tool, could sure use some lessons on it.
Cheers
thecrest
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