Over the last couple of years – especially through the Covid crisis – the real estate industry fully embraced the benefits of the digital world, from live feed video open houses to online closings.
But there are times during the process that we now need to step back and rely on the human touch of a real estate agent, such as when deciphering the factors to determine your home’s value.
With that said, here are a few things to consider regarding the dependability of third-party online home values:
How do online third parties estimate your home’s value?
Online estimators each have their own algorithms to come up with the worth of a home, which could include the square footage, the number of bedrooms and bathrooms, reported interior updates, the size of the property, the neighborhood and location, and more.
The estimate is usually based on public (MLS) and user-submitted data, as well as market conditions. Unfortunately, this all adds up to an estimated number value pulled from those records, not a subjective appraisal.
Meaning, that if a home hasn’t been sold in years, major renovations or additions may have been made since those public records, which would not be reflected in the online estimate. You can’t quantify subjective information, like a home’s curb appeal, maintenance, interior design, and more.
Tax benefits?
Online tax records publish what you paid for your home and how much you pay in taxes, but the value of your neighbor’s home could be significantly different from yours if they bought theirs 30 years ago and you just bought yours a few years ago. That’s because the property tax base resets for every home each time it’s sold.
Online home valuation sources can only go so far with this data when applied to their own algorithms to truly give an accurate home value. Current market values aren’t in the mix. In fact, many of these sites express that their estimates are just the start of the valuation process.
The strength/weakness of comparables
Comparables alone should not be taken as gospel when establishing a home’s value. It should just serve as a guide to pricing a home. That is because, as mentioned before, your neighbors’ homes could be vastly different.
A real estate agent who is knowledgeable on the details of the market will be able to better argue/defend your home’s value if it’s higher than the comparables and help potential buyers understand why your home is priced at what it is. Remember, the goal is to sell your home faster and for the most money possible.
The human home value estimator
Hiring a professional human realtor is the best solution to getting the most accurate value of your home before you list.
Trust an expert for a more refined comparative market analysis. Trust Paige Bird, the #1 South Carolina RE/MAX agent for the last eight years. In 2021 she: negotiated the sales price for her clients to get 1.27% more than the area’s MLS; sold 115 homes for a total of $33.9 million; sold 68 of those above sales price, with an average list to sales price of 99.08%; and sold listings ranging from $8500 to $1.495 million.
Contact Paige Bird today so she can sit down with you to get started in the home selling process at 843-450-4773.