Read an excellent post about home valuation this morning by Greg Fischer that I think every home seller should read. The basis of the post is the term “unzillowable” (in reference to Zillow’s automated home valuation model, aka the Zestimate) and is probably the best explanation I’ve ever heard of the various home value estimate websites and models.
When sellers look online and see the various home values in their neighborhood (or of their own home) and take that as the word of law in seeking a listing price to sell their home at, they often find themselves at odds with their real estate agent and the current buying public. While the estimates can be a gauge of the general value, they are not an absolute and should never outweigh the valuation of an experienced real estate agent. There are just too many factors to take into consideration in any given town, neighborhood, or street. While the tech companies have done a lot to improve and add to their algorithms, they can never replace the nuances that are only visible to the person viewing the home or the local knowledge of community issues that might affect the home’s price.
Despite the inaccuracy of many home value estimates of the computer generated kind, there is actual value in them. They are a great starting point…not for a price, but to start the conversation about what the home is worth in today’s real estate market. Conditions and variables that can only be seen in person should be taken into account as well as the recent sales data and trends in the local area. This is what real estate agents do everyday for their clients.
Next time you want to know what your home is worth, contact us, and we’ll be happy to help show you your home’s true potential value.
image courtesy of jared