tongue hanging out

Raspberries to the sellers who believe that sources that have never viewed their home has accurate values.  I'm referring to the Appraisal District, Zillow, and other entities that pull comparables and assign an average for the home.  When I visit a seller I usually approach it in a two step process.  An appointment to view the home first and a second appointment to thoughtfully go over the analysis.  I am a certified appraiser so I do spend a lot of time looking over many factors and comparable sales as well as active listing information.  After going over the data I sometimes come across a seller who feels that the Appraisal District, etc value is more on target.  Of course the value reflected is higher so it is a bases they would like their value to reflect.  I explain the process and how these entities use a price per foot that the data they draw from may be very dated, etc. 

The reliance of value from Zillow and other like sources can also be used by buyers as their reference as to what a property is worth.  In this scenario the value is usually substantially understated as the entity has no clue as to the condition of update and other factors such as superior builder, quality.  I struggle with this as well and usually end up giving my comparable analysis to the agent to share with buyers because they do not know how to value properties.  In this instance it is a shame that a professional does not learn how to properly determine value.  Too much reliance on MLS generated CMAs which is not individualized for the home but is a reflection of averages is being used as a bases for opinion. 

Frustrations result when outside computer generated sources spit out a value for a home and the facts of why this is improper is ignored.  Can it be that pushing a button for a value is just easy?  Doesn't it make sense that a well researched thoughtful analysis yields superior information?  Just a pet peeve and one that I artfully have learned to address but still is frustrating.

 
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6 Comments on Top Pet Peeve with Sellers

JAN
05
107,660 Points

You are so right!   For some reason, homeowners believe it, if they see it in print or on the internet.  But of course if you told them their home was worth more then Zillow, I am sure they wouuld listen to you. 

5:46pm • #1

I think it's a product of our technology-driven, impatient society. We want comps, stats and facts RIGHT NOW, we don't want to wait the hours it may take an expert to conduct their study or analysis. Computers drive down the value and craftsmanship of any skilled trade - the only increase is in the amount of product, in this case the ease and # of comps.

To me, it's along the same lines as buying furniture. You can buy Ikea furniture made of machine cut-n-pressed plywood, assemble it yourself and definitely save costs because everything is done by a machine. But that Ikea furniture will not stand the test of time like hand-routered, real-wood pieces. Zig Ziglar often brings up a good point about price vs. value. The one time price may be lower, but the long term value is lost when you skimp.

 

6:00pm • #2
1 Featured Post Outside Blog

Connie, this is one of mine, too....I like your expression "reflection of averages" - I will use it myself if you don't mind. Trailing right behind is evaluation done by "other agent" who promises to sell for much more than true market value...oh, well...we will survive ... LOL...Happy new year ,Bo

6:04pm • #3
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Since Texas is a non-disclosure state, outfits like Zillow can not get access to MLS sales data.  Their numbers are often based on loan amounts rather than sales prices.

9:12pm • #4
252,554 Points 2 Featured Posts Hit Router

It's funny how every seller becomes an appraiser, real estate agent and expert when it comes to the value of their home eh?  If they were the expert, then why are we sitting at the kitchen table?

I blogged on a similar vein with Automated Valuation Models just a few days ago.

10:19pm • #5
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Connie, I think Kathy hit the nail on the head; the source that values the home highest will be the seller's fav!

11:40pm • #6

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Connie Goodrich, CRS (McKinney Realtor) Texas

Mc Kinney, TX

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Keller Williams Realty

Address: 6951 W. Virginia Parkway, Suite 100, McKinney, TX, 75071

Office Phone: (972) 562-8883

Cell Phone: (214) 906-7547

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Connie shares information regarding the real estate industry, areas in the Dallas, McKinney, Frisco, Plano, Allen, and DFW Metroplex and great experience with vendors.


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