The real estate industry has been a great example of an industry that has adopted and embraced technological advances. Gone are the days when you’d have to meet your real estate agent at his/her local real estate office to look through the Multiple Listing Service (MLS) book of homes for sale. If you happened to find something you liked, then your next step was to pull out your map and figure out the locations. Fast forward to the present time and you can conduct your home search right from your phone. In addition, you can obtain your home value simply via a few clicks on your phone or computer. Real estate marketing sites such as Zillow have become quite popular, including their Zestimate home value estimation tool. So what are the issues with these tools? We discuss below.
A home value… with a grain of salt
Online home value estimates are a convenient way to get an idea of how much your home is worth. However, it’s important to be aware of the challenges with these estimates, as they can oftentimes be inaccurate. A few of the most common challenges are:
- They may not be accurate. Online home value estimates are based on computer-generated algorithms that use data from recent home sales. However, these algorithms can’t always take into account all the factors that affect a home’s value, such as the condition of the home, the neighborhood, and the current market conditions. As a result, online home value estimates can sometimes be inaccurate.
- They may not be updated regularly. The data used to calculate online home value estimates is typically updated on a monthly or quarterly basis. However, the housing market can change quickly, so these estimates may not be accurate if they’re not updated regularly.
- The surrounding neighborhood being factored varies from property to property. When generating an online home value estimate, these computer algorithms will apply a standard radius in miles for all properties. This can result in inaccurate estimates since neighborhoods can vary substantially from block to block.
It is important to remember that online home value estimations are not substitutes for an appraisal. If you are simply trying to obtain an educated asking price for your home, there is no substitute for a local and knowledgeable real estate agent. He/she should be able to perform a comparative market analysis for your home to determine the ideal listing price.
Are you looking to sell your home in the South Florida area? We can help! At Live South Florida Realty, Inc., our listings consistently sell quicker and for more money than the typical home on the market. Contact Natasha today! Also, be sure to download the free Florida Home Search app!