Online Valuation Services Miss the Mark on the "Human Factor"
It is not uncommon for Charlotte real estate agents to arrive at a listing appointment facing eager sellers who have previously visited an online home valuation and found their home value to be significantly higher than the actual value. Sellers then question OUR estimated Charlotte real estate values.
Homeowners utilize several valuation tools provided by a variety of online sources. It's relatively simple to explain in one word - HUMAN - why it's best NOT to rely on these sources. You may find one that is absolutely spot-on with the bare data but, I don't believe that a representative from any of these online sources has ever walked through every single sold home in every nook and cranny of the city! Knowing what upgrades have been done, what layouts are selling and which are not, even what specific neighborhood is comparable to is VERY important data to have to formulate an accurate CMA.
Here are answers to two of the most frequently asked questions that I receive with regards to online valuations.
Q. Why is the price for which you think my home can sell, different than the estimated home values provided by online real estate sources?
A. Because computer programs set those prices. Here’s how it works in general. A computer pulls the description of your Charlotte real estate from public records. Using that extremely basic information, such as square footage and number of bedrooms and bathrooms, the computer comes up with a price for your home.
Computer programs and national websites, nor their employees will EVER personally visit your home or other homes in your neighborhood to distinguish the differences and similarities (remember the HUMAN factor!). For example, they cannot see that your home has recently been painted and renovated and is in a totally different development than the neighboring one that is possibly even on the same street, within the same zip code.
Q. Are there any circumstances in which those computer generated values are at least fairly accurate?
A. The estimated home values could be in the ballpark if all the following are true:
- Your home is in a subdivision in which homes are nearly identical;
- Several homes, just like yours, have sold recently;
- NO homes are being sold as short sales or going into foreclosure;
- Your home is relatively new and has not had a major renovations or additions.
While it’s fun to go online to see what your neighbor’s home sold for, don’t use that information as the bottom line, denoting what your home could sell for in today’s market.
If you’d like a free, in-person, professional analysis of what your Charlotte real estate could sell for in today’s market, give me a call or email me today. No obligation, just ‘real’ information.
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