How Accurate are Online Estimates?

How Accurate are online estimates? 

Pop-up ads monopolize computer screens every day, showcasing free estimates of what your home is worth. On popular sites like Zillow and Redfin, simply typing in a street address will yield an enticing, high-end bracket estimate of what your home may sell for in today’s seller’s market. But determining the actual value of your home is a bit more complicated than the simple click of a button.

 

Utah is one of eleven states that are non-disclosure, meaning only if you have access to the MLS would you get accurate statistics on sales. So, while online estimates might paint an entertaining picture designed to get your attention, they don’t give an accurate assessment that can help you make a wise and significant financial decision.

 

Online sources lack accurate, up-to-date information about a property, such as upgrades, renovation, and landscaping, which can cause a higher or lower estimate than your home’s actual worth. Pricing your home correctly when you place it up for sale is vital. As a seller, if you price your home too high, even in today’s competitive market, it could sit and not receive offers. If you undervalue it to sell it faster, you could lose its net worth profit, which may be crucial to helping you into your next home.

 

Price is one of the first things buyers look for when searching for a new home. Having the wrong price on your property could deter the right buyer from making an offer.  Whether you’re looking to buy or sell, or even if you’re a homeowner wanting to keep track of your home’s value, it’s essential to understand how to assess the worth of your home accurately.

 

As seasoned and award-winning real estate agents, we can help you determine the proper market value of your home, with no cost or contractual obligation to you at all!

 

There are three types of home values that are key in assessing the worth of a home – appraised value, assessed value, and true market value.

 

• Appraised Value – With appraised value, a professional appraiser is in charge of determining the appraised value of a home. The appraiser is usually an objective, licensed professional who with no allegiance to the buyer, seller, or lender, regardless of who is paying their fee.

The appraiser ensures the lender that the buyer is not overpaying for the property. The appraiser will compare the property to similar homes in your neighborhood. They will evaluate factors such as location, square footage, appliances, upgrades, improvements, and the interior and exterior of the house.

• Assessed Value – A local municipal property assessor assesses the home’s value by evaluating comparable homes in the neighborhood, the home’s size, age, overall condition, and any improvements or upgrades made while you’ve lived there. Most counties use a multiplier (between 60%-80%) to calculate the final assessed value.
• Actual Market Value – Your real estate agent will determine the accurate market value with both their expertise in buying and selling properties and specialized Coldwell Banker technology that helps assess the true worth of your home. Having a real estate agent is the most accurate method, which will ensure you list your property for the right price. Your real estate agent can also offer suggestions and cost-efficient upgrades that will improve the actual market value, making sure your home sells for its net worth.

 

As Coldwell Banker agents, we can provide a competitive market analysis, which compares your home to similar homes in the area. We can accurately assess the condition of your home’s general location, exterior, interior, age, and style of the house and marry it with current market trends to ensure the best actual value.

 

While it’s entertaining to click those pop-up ads or enter your home address on popular real estate sites, stop and think – how accurate are online estimates? Does wishful thinking help you in the long run in determining how much your home will sell for? If the answer is no, contact us today. We can give you a no-obligation, free assessment of your home’s worth, along with a comparative market analysis that will help you assess which properties are available in your desired location.

 

Get started the right way, and rest assured that you’re in good hands with Inman Torres and Company. We’re here for you.