Selling Your Home

Are you in the process of, or simply considering selling your home? If so, it’s never too early to learn about the selling process from an experienced Realtor®. Please contact me for helpful information about selling your home. Resources and information are also provided below.

But Zillow says...

Zillow estimates have left homeowners either confident of their home’s worth or confused since Zillow first started. So, what is a homeowner to believe? Let’s first look at how Zillow comes up with a home’s value.

Zillow uses a computer algorithm to price real estate called an automated valuation model (AVM). There are certain inherent problems with AVMs. The most notable problem is that AVMs fail to consider the condition and situation of a property. Does the property have a view? How updated is the home? Is the area in a good location? AVMs are limited to working with mathematical averages. Basically, a bot does the work - not a human who thinks, sees and evaluates a property’s qualities. AVMs simply work with numbers collected from public data.

Another issue with AVM estimates is that the data collated may be from different years. This may make the accuracy of the value estimate unreliable. According to Ron Cowan Appraisal Service in Yorba Linda, CA, “Many AVMs and free online services rely on public assessment records. In many states, for example, assessments may only be required every three years — the value may be nearly three years old in that case.” (http://www.roncowanappraisal.com/AboutAVM’s; May 9, 2014) AVMs often compare properties that were sold years prior and sold for much less or much more depending on whether the property was sold as a foreclosure property or during an upmarket. Such comparisons can throw the value of a home off significantly. Some valuations can be off by as much as $100,000. That is a high risk to take when selling or buying a home and needing a reliable price valuation.

What to Do

The most reliable source of your property’s value comes from a thorough market analysis conducted by a real estate agent or an appraisal. Real estate professionals sift through recent property sales, analyze property condition, location, obsolescence, current market conditions, and the unique characteristics of a home. These professionals then collate this information, weigh which characteristics most match your home’s likeness (therefore not giving equal weight to each property which is what an AVM does), and produce an accurate property value that will stand the test of the current market.

Other Automated Valuation Companies

Below are several companies that use the automated valuation model (AVM) to price homes. Here is a quick look at what’s available:

Try all AVM company estimators

When you enter your address with each of these companies and you most likely receive different estimates. Which one of these prices would you believe if you were the buyer for this home? (Probably the lowest value!) Which one of these prices would you believe if you were the seller? (Probably the highest value!) Which is correct?

AVM estimates will continue to be popular due to their easy access and quick response. It is important to note that while AVM estimates are free, so are qualified CMAs (Comparative Market Analysis) from your local real estate professional. A CMA is the property valuation provided by licensed real estate agents/brokers. CMAs are provided for free by most real estate agents. While a CMA may take several days (or it should, because the agent needs to view your house and take the time to research qualified comparable properties to provide an estimate), a CMA provided by a licensed real estate agent is significantly more reliable as a market valuation for a property. Another option is to purchase an appraisal.

What's My Home Worth?

Click Here to Request a Free Home Valuation!

More Seller Resources