Real Estate Myth

Real Estate Myth: Online home value estimates and market value determined by a REALTOR are equally accurate.

Most people are familiar with online tools that estimate the value of your home, but can these tools accurately determine the value of your home?

The facts: Online tools, such as Zillow’s Zestimate, use an algorithm to estimate a home's worth. However, these algorithms do not consider many important factors, such as the age of the roof and HVAC system, or how well the home has been maintained. They also don’t consider the view or curb appeal. These factors can significantly impact value. Putting too much trust in online estimates can cause owners to have unrealistic expectations of their home’s value. Suppose you have invested a significant amount of time and effort in upgrading your home. In that case, online estimates may lead you to believe that the value of your home is insufficient to consider selling it because they don’t know what you did. Alternatively, you may consider selling it by owner and lose money because you sold it at a price below its true market value. Likewise, if your home has a lot of deferred maintenance, they may give you the false impression that its value is higher than it really is, and you will be inclined to overprice it. Overpricing your home causes it to linger on the market longer than necessary, ultimately costing you money.

Online tools that estimate the value of your home are fun, and they can provide some general information, but they can never replace professional advice. The best strategy is to have a trusted REALTOR or appraiser come and learn about the unique features of your home and then determine its value based on recent comparable sales, the condition of your home, its distinctive features, and recent local market trends. It can make the difference of tens of thousands.

Call us today to initiate a market analysis of your home. It’s free, and there is never an obligation or pressure.