Real Esate Blog

August 24th, 2008 2:20 PM
I'm sure most all sellers have seen and probably used the internet for finding their home value. These programs are all over the internet, on most all real estate sites for sure. Are they any good? Well, yes and no.  If your home is about equal to the average home in a sub, then you will get an average value. If your home is not the average home then you will not get a good idea of the true value of your home. Wheather your home is better or worse than the neighborhood you will not get a very accurate value. If your home faces a main road, has high power lines in the yard, and a junkyard next door you will not get a true value. If you live on a cul-de-sac and have a larger lot, a nice pool and an added sunroom, you will not get a true value. Even if you are average for the sub, the method used by these sites use AVM (automated valuation models) can be wrong from the start. Many AVM's use county records for values which are updated only every 3-5 years, and this leads to many inaccuracies. Plus the AVM's depend on historical records which probably consider the values to still be escalating when, in reality, they are declining. So, I would have to come down on the "NO" side of this equation. How, then, do you get an "honest" evaluation? Two ways, first is with a "honest" real estate agent who knows the neighborhood. I note "honest" because a good portion of agents would like to list your property and will give you an inflated value to make you feel good about signing up with them. I always give clients the truth up front and lose many listings by doing so, but I do not want to come back to my client after 30 days or so on the market and tell them they will have to lower their price to get a sale. Second will be by hiring a legitimate appraiser. But once again you should be wary because, since you are paying for the apprasisal, many appraisers will also give you a somewhat inflated value. So, It is buyer beware when trying to find the true value of your home. The only true estimate will be found by putting your home on the market and see what offers you receive. The market will always give you the truth!

Posted by Phil Turner on August 24th, 2008 2:20 PM

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