Why Your Computer/Smart-Phone is Wrong

Why Your Computer/Smart-Phone is Wrong

 

I’ve had a number of customers quoting me their opinions of market values of homes of late as a result of their research based on automatic online services and/or their phone apps.  Typically when I explain the factors involved in determining true market value, I can show why these numbers are sometimes misleading.  Unfortunately, it appears that some consumers just want to believe what they think benefits their positions, regardless of what the facts are.

Here are two quick examples:

The first:  A fairly new subdivision, waterfront with dock (though a long way from the Ocean).   The home is priced at $625,000.  The client questions the value when a similar home next door sold a few months ago for $400,000.  He wants to offer $400,000.   A little further investigation shows recent sales in the neighborhood range from $550,000 to $675,000 sales prices.  Depending on size, lot view and the quality of the water access.  The home, the customer pointed out as having sold for $400,000 was a foreclosure that was bought on the court house steps.   Whether there were any outstanding liens, condition issues, etc., I have no knowledge of as that home still sits empty and there could very well be undisclosed issues that were involved in this sale.

The second:  Also in a newer neighborhood near downtown Stuart; townhome style homes.  The home in question is listed at $360,000. Similar, adjoining homes on either side show sales in the past year at approximately $200,000, according to Zillow.  Mr. Buyer says, this home is only worth $200,000.  Now the real story is that this subdivision has been identified as having defective drywall.  Both of the above sales were distressed sales to investors that are currently doing the work to remediate the drywall issue.  The home that is currently listed has been remediated.  Seller claims that over $100,000 has been spent on the fix.

In the two examples above, neither customer was swayed by the facts and continue to look for their elusive on line computer based bargain.

These two examples are fairly straightforward examples of why any computer valuation can be and very often is lacking.  This is why knowledge of the local market is so important.  So if one is looking to make an educated real estate decision on Florida’s Treasure Coast, give me a call.

Why Your Computer/Smart-Phone is Wrong