HOW MUCH IS YOUR "HOME VALUE REPORT" WORTH?
Like any investment, homeowners have an interest in tracking the value of their property. This is especially relevant during a shifting market, with rising interest rates and an inflationary environment. You may be one of those people who is wondering: “Is my property value rising, or dropping, and what did my neighbor’s house sell for?”
Many sellers have utilized online automated valuation models [AVM’s] - only to be pleased when the values appear higher than they expected or shocked when the home’s instant value is low. One of the most interesting things about selling real estate is there is no retail price tag. Allow me to provide some context: Home valuation sites contract with major title companies to obtain county tax roll data and using this tax roll data plus listing data (from the MLS), home valuation sites apply their own algorithm to come up with an instant estimate of value for what a home could be worth. However, algorithms can not make adjustments to reflect whether or not a home has been updated, how well it's been maintained, or intangible values such as views or privacy.
There is a large difference in these valuations. Zillow has dubbed their version of this AVM a "Zestimate" and disclose on their site that depending on where the home is located, their Zestimate could be off by as much as 40%. Side note: Zillow blamed it’s Zestimate for inaccurately predicting the value of homes; lost $530 Million(!)
In short, I do not expect either of the two new technology platforms I use [Homebot and RealScout] to provide a perfectly accurate assessment of my client’s property...however, they do give monthly updates and keep clients informed about the sales in their area. Yet, this is where it gets interesting, with rising interest rates, we see demand cooling down, and price segmentation becoming more stratified. Therefore, simply averaging the sales data from homes sold in your zip code or neighborhood, 1/2-mile radius, etc. will not be accurate enough to determine what your home would sell for if it were on the market today. These apps have robust artificial intelligence, plus adjustable ancillary information (some of which I can control) and provide a consistent flow of the most relevant data to hopefully keep my clients informed.
Estimating a home's market value is not an exact science. I track the weekly sales data to monitor the sales trends, segmented by price/ property type and total volume of units. Plus, I am constantly networking with top agents who do the largest amount of sales by volume, and also speak with appraisers who share the latest market information. All of this helps me to stay informed - so that I can share this with my clients. The reports I send will automatically include a tight range of value, which may need to be adjusted by updates or improvements you may have made over the past years of home ownership. I would be happy to review the most recent listings and sold comparable property, accurate to within hours or a few days at most. Please don't hesitate to reach out with any questions, or to request a complete pricing analysis.
Regardless of the fluctuating changes in the market, your home is probably worth more than you think. To receive a customized valuation report, please send me an email or visit this link.