Have you heard the saying "A man with three watches never knows what time it is"? This applies to gauging the real estate market. Consumers, adept at finding property data on the Internet have experienced that data from Zillow.com is different from Trulia.com, and a home's tax assessment is a whole other story.
Turning to the news isn't very helpful either, as you often hear conflicting reports depending on the media spin.
Real estate is extremely local and detailed. For example, "Home sales in Thurston county are down" is not the same as "Home values in Thurston county are down". This isn't just a nuance; these are differences that completely change the picture. It's like taking your temperature with a tire pressure gauge rather than a thermometer.
Even if average values in Thurston county are reported to have declined, the county is broken down into 16 regions, and some of them are appreciating in value, while others are in stark decline. That's the difference between taking your temperature between your toes, versus under your tongue. You'll be hard pressed to find detailed data that breaks the market down to the accurate degree. Even the sophisticated valuation program we, as Realtors® have access to through the title companies, are generally not a true indicator of market values, as some sales are distressed sales (foreclosures, pre-foreclosure) some are sales among relatives (divorce or estate settlements) and other sales are inflated because the seller is paying the buyers' closing costs and financing fees.
Here is the definition of True Market Value: The amount a willing and able buyer will pay for a property in an arms length transaction on the open market.
I wish all I had to do is turn to Zillow.com when I do a market analysis for a particular property. Hey, it only takes 5 seconds for them to spit out a value and I'm done. Any Realtor®, worth his salt, will look at recent sales (6 months or less) within the target neighborhood and inspect every comp to see how long it was on the market, who bought it, how the sale was financed and if the home has similar features and upgrades. No algorithm has been configured yet that can automate this process. It requires a knowledgeable real estate professional. To get a clear reading on the local market conditions, the only and best gauge required is a skilled Realtor®.
Sandy Nelson
Olympia Realtor®, GRI, ASP, Built Green
360-789-7505
www.SandyNelsonRealEstate.com
_____________________________________________________________________________________________________________________________________
All the real estate information on the Internet can not compare to the real time, on-the-ground expertise of a local, skilled Realtor ®. Among all the South Sound real estate resources available, the most powerful tool is my phone number.
Comments(4)