DO NOT RELY ON ZILLOW ZESTIMATE!
Even your PETS know not to trust the reliability of the internet.
So . . . Why would you even fathom trusting the internet to determine the “Market Value” of your house? Through the years, internet information has misguided MANY house buyers and sellers resulting in MANY MILLIONS of dollars of financial harm.
Sellers risk selling their house and “leaving many thousand dollars on the table” (Pricing WAY below market value) or enduring excruciatingly frustrating experiences with difficulty getting prospective buyers to show up . . . or MANY showings and no offers.
Sadly, many Buyers are unwittingly paying too much and/or missing out on opportunities to buy fantastic houses and aren’t pulling the trigger because the internet “advises” them they’ll be overpaying.
The bottom line is that the internet algorithms cannot possible get these “House valuations” right because the internet doesn’t know the nuances of the local markets and more so because many of them don’t have all the data. Without access to ALL of the data, no “estimates of value” are valid.
Mr. & Mrs. SellerBuyer, There are 2 kinds of humans who can solve this problem for you. These are LOCAL Real Estate EXPERTS who experienctially know and personally reside in your Region – State – City – Burb – Neighborhood – and quite possibly your street.
These are Appraisers and REALTORS!
These 2 Real Estate Knowledgeable beings do this every day. They live and breathe real estate right there in your community . . . Might even live on your street. Odds are decent, these folks can (within a slim margin of error) offer an amazingly accurate opinion of value without even turning on their computer. Of course they’re professionals, so they will prefer to “validate” their opinion by digging into the MLS (Multiple Listing Service) and/or local tax records to provide, in writing with supporting data about recent CLOSED sales comparable to the subject property.
An appraisal will (for a fee) provide an “Appraisal Report”.
Most REALTORS will be willing (at no cost) to provide an CMA (Comparable Market Analysis). Of course the REALTOR will hope to earn your trust, so you will choose to “hire” them as your Exclusive Representative for your purchase and/or sale.
Some tips from me about pricing your house.
- Use the Appraisal or CMA to establish a “Baseline” for an “Average” house like yours
- Do whatever you can do to prepare the house for the market. Fix anything you know is broken.
- De-Clutter by starting to pack anything and everything you won’t need to use for the next couple months – Move it all to a storage unit
- Tighten up and manicure the yard – Exterior appearance is the first impression for every prospect
- Price Points – Discuss this with your REALTOR – Buyers typically shop in a range of price ($350K-$400K) . . . and usually buy at the top end of the range. This top end is usually “a stretch” for them, so they will not even look at anything over $400K . . . If you price at $405K, your house will be invisible to the $400K shoppers. Price Points tend to be $25K increments.
- We all KNOW that YOUR house is the nicest house in the neighborhood, but BEWARE!. “Delusions of grandeur” sometimes result in pricing too high thereby creating a “Chase the market down” spiral of price reductions
- LISTEN to your REALTOR and DO what your REALTOR asks you to do. After all, you don’t argue with your Doctor about your medical treatment, do you?
If you don’t know a REALTOR, connect with me Barry@ParetoRealty.com.
Wherever you are in the world, I can help you find your quintessential real estate professional.
This pricing conversation has potentially the most potential for conflict in this process. We all know the stakes are VERY high.
So . . . Will you tell me again why you could possibly think it’s a good idea to rely on the internet to determine the “value” of your house?