Sellers: Zillow, Trulia, Realtor.com, Redfin, and every other estimated home value website out there is inaccurate. Heck, even your tax assessor’s office is inaccurate when it comes to valuating your home. Why? Because they use computer-automated programs to estimate its value.
First and foremost, there are many factors that determine a home’s value—location, style, amenities, school district, etc. Knowing this, I’ll give you an example of how automated systems can make mistakes. Let’s say there are two houses, House A and House B, from the same neighborhood that were built at the same time (20 years ago) and are the same size: 2,000 square feet. The only difference between them is that House A recently had its kitchen and bathrooms updated and was sold about two years ago. House B, meanwhile, has never been resold since it was built and doesn’t have any upgrades.
When an automated system focuses on a certain area, it incorporates all the recent sales data. If it doesn’t know what House B initially sold for, it will use the data from nearby homes that have sold recently. If House A has upgrades, it stands to reason that it’s worth more than House B, but an automated assessment will give House B a higher value. Unfortunately, many people trust these assessments despite the fact that they’re wildly inaccurate.
So how can you accurately calculate your home’s worth? Say hello to your friendly neighborhood Realtor! If you give me a call, I’ll come to your house, take lots of notes, and compare it to other houses based on all the factors I’ve shared. The thing is, I haven’t seen a real estate market like this in 20 years, and I’m not just saying that. There is very little inventory, and sellers are cashing in on the fact that interest rates are also very low, which means there are a lot of buyers but not enough houses for them all.
If you’re considering selling your house in the next six to seven months, call me today so I can give you the very best estimate of its value. If you have any other real estate needs, feel free to reach out to me as well. I’d love to help you.