Special offer

Online Value Estimates Problematic!

By
Real Estate Broker/Owner with Havelock-Adams, LLc BR520783000

While technology has become an important part of our lives, some aspects of the new information access age is problematic. We were just asked to list a property that was involved a trust type situation. To eliminate any possible family issues downline,  we suggested that a professional appraisal be accomplished before formally putting the home on the market.

A state licensed appraiser was hired. In a professional and timely fashion, he came back with an appraisal of $215,000. The seller was horrified because she just saw an estimated value on Zillow of $244,000.

She was immediately skeptical of the qualifications of the appraiser. Keep in mind when accessing these online "value" estimates they are extremely generalized. Algorythms used to calculate online estimates only consider averages. Averages which are influenced dramatically by the size and sold prices of homes in a genertic area range regardless of the personality of nearby neighbors or neighborhoods  

When deciding on a desired selling price make certain to give weight to the agent and others, like appraisers, who know the subelties associated with your particular neighborhood and the competing homes. Online estimates may but generally don't reflect the true values in any given situation.

Dan Hopper
Dan Hopper - Gold Way RE - Westminster, CO
Colorado Broker / Referral Services

This is a good explanation for the discrepencies between REAL folks and the online estimations, .   Selllers need to understand that ONLINE does not review the interior of a home!

Jan 20, 2016 04:10 AM
Ward Adams
Havelock-Adams, LLc - Surprise, AZ

Dan,

Unfortunately, many Realtors don't explain the listing price process that is required. Like so many other things, if it's on the internet it must be true.

Jan 20, 2016 04:18 AM