Help, Zillow & Trulia just fell through the Ice. This week's 5-11-14 Real Estate Trend Report by Jim Miner in South Scottsdale, which is prepared by Michael Orr at Arizona State University, shows the inaccuracies of the market predictions of Zillow (Z) and Trulia (T). As we all know, these two sites Z & T provide a great deal of real estate information, however their predictions as to the market performance have grossly missed the target here in the greater Phoenix real estate market. Michael Orr who prepares the Cromford Report has taken the time to do the research which shows the actual performance and returns here in #SouthScottsdale and the rest of the greater Phoenix real estate market.
When a company decides to begin the practice of real estate market trend predictions they should be aware, metaphorically speaking, the "ice starts to get very thin". Here in the greater Phoenix area Z & T fell through the ice. "T' makes an annual prediction the market will be down about 3.9% and then the market moves up approx 29.6%, "Z" makes several predictions the market will appreciate in the single level % (need to watch the video) and what actually happens is the real estate market makes a substantial move to the upside.
As a seller the important fact to take away from this video is do not fall in love with National Real Estate Companies predictions as to the percentage move the market will make and the direction. Can you imagine being a seller and you looked at the "T" prediction which stated the market should move to the downside approx. 3.9%, so you immediately sold your home so as not to follow the market values down but then to your demise the real estate market went up approx 29.6%. As an example, if your home was worth $200,000 that means you would have left approx. $60,000 on the table, you would not have been a happy person.
Remember, when Z & T and many other national companies are showing you what your home is worth, just keep in mind that nobody from those firms knocks on your door and asks to come in and do an appraisal. I can assure you the drone in the sky and the AVMs (asset valuation models) cannot smell the animal odors that have permeated throughout the home for the past 10 years, and do you think that would have an effect on the price a Buyer would pay for the home, what you say, "help, Zillow & Trulia just fell through the ice", you know I believe you are right!
So what can you do in order to make a sound decision as to the value of your home? Here in #SouthScottsdale what we do is provide an accutate "comparable market analysis", a graphic look at the demand & supply curve, the trend of pending sales, the days on market for actively listed homes, the $/sq.ft., the median price and average price and what homes are being used to generate those averages, success rate of sold homes, inventory, and several more key components of the market. Because what you as a seller need is an accurate reading of the real estate market in your city or town and that is very difficult to provide with any sense of accuracy at the national level. The real estate market is so diverse at the local level, as here in the greater Phoenix area we have a couple of cities that are moving in the opposite direction as to the rest of the market.
It is very natural as a seller to grab the highest valuation being shown by one of the national companies like Z & T and decide that is what you want for your home because they said so. Hopefully, after watching this video, 5-11-14 Real Estate Trend Report by Jim Miner in South Scottsdale and others that I provide you will be able to make a much better decision as to the value of your home.
If you have trouble viewing this video go here; http://youtu.be/voI3fKA-rho