In recent years, the use of online home valuation tools has increased quite considerably. After all, this is a relatively simple and straightforward way to receive home value estimates, making it easier for them to proceed with selling their home and managing their expectations. As selling a property in today’s market can be quite stressful, anything that makes this process easier is welcomed with open arms!
As mentioned above, there are many reasons why homeowners and sellers may opt to use a digital home value estimator tool, such as those designed by Zillow’s Zestimate, Redfin Estimate, and Realtor.com Home Value. After all, they make it easier than ever to receive quick home value estimates. Furthermore, many of these platforms have received positive feedback from users, increasing their trust in them when determining the estimated value of their own property.
If you are considering using a home value estimator tool when selling your property, then you’ll be pleased to hear that you have a wide variety of options to choose from.
Currently, the top online valuation tools are Zillow’s Zestimate, Redfin Estimate, and Realtor.com Home Value!
Zillow’s Zestimate is designed to help users determine an accurate home value estimate based on public records, user-submitted data, and other factors such as market trends, the local market, and information about the property itself. Zillow’s Zestimate has a median error rate of 2.4% for on-market homes, and 7.4% for off-market homes.
According to their website, Redfin pulls from over 500 different data points when generating an estimate. This is a combination of publicly available data, information from MLS (Multiple Listing Service) platforms, and more specific property details provided by the homeowner. Redfin Estimate has a median error rate of 1.96% for on-market properties, and 7.53% for off-market homes.
Realtor.com’s home valuation tool, known as RealEstimate, is designed to provide users with an estimated home value by using a combination of public data, property details, and the local market. The data utilized by this tool is updated regularly to ensure they provide an accurate estimate.
While the platforms listed above are a useful starting point when it comes to discovering your home’s value, there are many others you may want to take into consideration. This includes:
While a home value estimate provided from any of the platforms listed above can be useful, it is important to note that this is not the same as receiving an appraisal. This means you will still need to go through the appraisal process further down the line. In addition to this, they are not entirely foolproof.
There are many reasons why these tools may miss the mark, which means that the property value put forward may be inaccurate. This is because they do not take into consideration the need for repairs (which can often impact home worth), rely on outdated data and algorithms, or offer up over-simplified valuations for unique California properties.
It’s no secret that the state of your property will affect the current value of your home quite significantly. This means that if your home address is within an in-demand or thriving area, the estimate provided through these tools may be inflated. After all, this is based on recent sales and the market rather than the actual property itself.
The quality of the results produced by any of the platforms listed above depends on the quality of the data sourced, whether they’re utilizing publicly available data or more specific property information. This means that they can only provide accurate information when their data and algorithms are up-to-date, which isn’t always the case.
California is home to numerous unusual or unique properties—which is often something that a real estate agent will use as a major selling point. However, once again, this is often not taken into account by online valuation tools, which focus on other factors such as value history, recent home sales, and more.
Given that we live in a world where we use our mobiles or laptops for just about everything, it can be easy to forget that they are not the only tools we can utilize when figuring out the estimated value of our property. After all, this can also be derived through appraisals or BPO (Broker Price Opinion).
Appraisals often give homeowners a more accurate picture of their property’s total value. This is because a licensed appraiser not only has access to the data points outlined above but also conducts a thorough inspection of the property before putting together a detailed report. This means they can consider value-altering factors, such as the necessity for home improvements, curb appeal, unique features, and more.
Like appraisers, brokers or real estate agents can also provide a more accurate estimate before you put your property on the market. After all, a local real estate agent will also bring a wealth of local knowledge and expertise to the table. This means they can factor in information such as the value or sales prices for comparable properties and recently sold homes in your area. In addition to this, before valuing your home, they’ll also conduct a property inspection.
A real estate agent or broker can conduct a CMA (Comparative Market Analysis) to determine a home value based on a variety of market trends. For example, they can take a look at recently sold homes with the same zip code (and their sale prices) to determine whether or not your property is worth more (or less) than this. In addition to looking at comparable homes, they can also factor in buyer demand.
There are, of course, pros and cons of using both online and offline tools when determining your home value!
PROS:
CONS:
PROS:
CONS:
As a thorough property inspection must be carried out, it takes more time to receive a home value estimate through this method.
As outlined above, there are many scenarios in which online valuation tools fall short. For example, though the estimator tool pulls data from numerous sources, including private and public records, this is not always as up-to-date or accurate as it should be, resulting in inaccurate home values.
In addition to this, an online tool is unable to pick up on issues within the property that a buyer is sure to notice, such as lingering pet odors.
Furthermore, important information related to the house isn’t taken into consideration, which means that you may receive widely different valuations for the same house when using both online and offline methods.
Generally speaking, appraisals and BPOs are more useful when determining the overall value of your property before putting it on the market. This is because they are carried out by an expert, meaning that accuracy is guaranteed and that numerous different factors are taken into consideration, for both off-market and on-market homes.
Generally speaking, cash offers are a better gauge of value for homes in poor condition than the results generated by a valuation tool. This is because they reflect the ‘bigger picture’ regarding a home’s value. For example, they can take into account:
If your property is in a state of disrepair but the buyer is looking to move as quickly as possible, they may be willing to put forward a cash offer that reflects this. This means they’ll be happy to move into the home as-is, regardless of the work that will need to be carried out after the fact.
Alternatively, a buyer may factor in the amount of money they’ll be expected to spend on repairs and deduct this from the offer they put forward. This generally paints an accurate picture relating to your home’s value, taking into account the work that needs to be done.
Finally, a local cash buyer will also have a strong understanding of the local market. This means that the offer they put forward will take into account recent home sales for comparable properties, as well as demand within the local area. This can drive up your home value quite considerably!
There are many scenarios in which it is advisable to choose a cash offer over online valuation tools!
There are numerous scenarios where selling your property as-is makes the most sense. For example, this is recommended when:
If not already obvious, there are clear advantages to relying on cash offers to value your property over online tools. Firstly, while they may use some of the same data, this is not the only information considered during the valuation process. For example, if you have put a great deal of time and money into upgrading your home’s exterior and curb appeal, this is something that may be taken into consideration when determining how much your property is worth.
Furthermore, cash buyers often work directly with real estate agents and appraisers, meaning that their offer will be backed by expert guidance and support.
If you are currently getting ready to sell your home but want to explore options when it comes to receiving a property valuation, it is important to remember that you have many options. While online tools can be a great starting point, especially if you want to manage your expectations, they are not always the most accurate or reliable. Furthermore, there are certain scenarios in which an appraiser or BPO is necessary, meaning that using these online tools just adds an additional step to an already complicated process.
Beyond this, experts believe that a cash offer is the best possible choice. This is because these kinds of offers are well-informed and accurate and cover the most bases when it comes to determining the precise value of a property. This can make it easier than ever to sell your home quickly.
Our Promise
Premier Property Buyers is a company that purchases, rehabs, and then sells houses at a profit. Offers are made to sellers based on market value and repairs needed. Premier Property Buyers, will do everything possible to bring forth the highest possible offer to give the seller the most benefit from dealing with a fast sale. In addition, we are licensed real estate agents and can either buy your house for cash or help you sell the more traditional route. DRE Lic# 01918543.
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