I’m sure you’re aware of online estimate sites such as Zillow, Realtor.com, Redfin, and Homes.com. There are many others but those are key players in the world of online estimate sites to get an estimate on what your home is worth. Those sites are very convenient to use (enter your address and in most cases instantly receive an appraisal value of your home), but they can cost you money. They typically lack accuracy and may have a significant margin of error. They are constructed using a computer-generated algorithm that utilizes historical public sales data and trends called an Automated Value Model, commonly referred to as AVM.
National AVMs derive values from automated computer modeling of public records and may not reflect the true value of a home due to the nuances of local markets. An experienced agent, familiar with home sales in the area, takes several steps to arrive at a more accurate fair market value.
Real estate agents provide invaluable expertise by leveraging their deep understanding of local market conditions. This includes insights into neighborhood trends, recent sales data, and current inventory levels. By tapping into this knowledge, agents can accurately assess the fair market value of a home. This is one instance in which AVMs lack, they won’t consider the current inventory levels, the neighborhood in which the home is located, etc.
Real estate agents conduct thorough property inspections, meticulously noting its condition, unique features, and any upgrades or renovations that could impact its value. This hands-on approach ensures a comprehensive evaluation that goes beyond surface-level data, allowing agents to provide more accurate and nuanced valuations.
Furthermore, agents excel at analyzing comparable properties to determine a home’s value. They meticulously review recent sales of similar properties, considering factors such as size, location, amenities, upgrades, and condition. Agents then adjust these comparable properties to account for any differences with the subject property, ensuring a more precise comparison. This meticulous process allows agents to offer a valuation that reflects the specific characteristics and nuances of the home being evaluated, providing clients with a more accurate understanding of its worth in the current market.
Additionally, real estate agents are adept at considering broader market trends and buyer preferences. They assess factors like supply and demand, interest rates, and economic conditions to understand their potential impact on property value.
By staying attuned to market dynamics, agents can offer informed insights into how these trends may affect a home’s value over time. Furthermore, agents gather feedback from showings and potential buyers, allowing them to gauge how the property is perceived in the market and adjust their valuation accordingly.
Contact an experienced real estate professional, familiar with your market area, to supply you with complete information necessary to maximize your home sale proceeds. Download our Sellers Guide.
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