With the advent and growth of the internet, many tasks are much easier now – you can shop without leaving your home, place your dinner order before arriving at the restaurant, get all the information needed to write a paper without going to the library, and, according to some believers – get accurate property valuations in order to buy or sell a home without a Realtor. Let’s look at the problem with this last part.
Online home valuation sites (like Zillow and Trulia, to name a few of the more popular ones) are more prevalent today, making home buyers and sellers feel as if they have access to the same information as Realtors. The misnomer is that this is very far from the case. Although there are times when the numbers provided are realistic, more often than not they are incorrect – sometimes by a few thousand dollars, or even as much as $20-50,000. Would you want to make an important decision on value based on a number that may be incorrect?
Realtors still play a very important role in home valuation. Working with a local, experienced agent who knows your area provides not only peace of mind, but information beyond just value. There are many facets involved with pricing a home, and while the starting point is always comparable sales, there are many other important things to consider that software cannot detect. For example, what if you have an oversized yard compared to your neighbors? A view? Multiple upgrades to your home? An addition? These are some of the things that a Realtor will take into consideration in determining value.
Comparable sold properties have likely been appraised before they sold – and appraisers are specifically trained to value homes, taking into consideration similarities and differences between properties. Realtors in turn use these comparable values and then tweak them, as do appraisers, when it comes to factors other than square footage or similar location, that can alter prices. Being a Realtor does not magically allow one to be skilled at this – it takes an in-depth knowledge of the business, the area and the market, as well as experience.
It is important to note that the same is true of rental values. While some sites that offer rental income information may be close or even spot-on, they are not always correct. If you need to obtain rental information I highly advise you to contact a skilled property management company in your area.
While obtaining information online is a good place to start to get an idea of your home’s value, deciding to forgo the expertise of an agent could end up costing you both money and time. There is a big difference between a computer valuation of a home and one completed by an expert. So, if you are thinking of selling your home, or if you are a buyer who is home shopping, please consult with an expert so that you are completely informed and able to make the right decisions.
Lynn Kronk – Realtor