Online Home Values

Thinking of selling your home? Did you go to Zillow to check the Zestimate or to other online sites to discover the value of your home? Here is some very important information you need to know about those estimates. They are incredibly inaccurate.

In the New York Metropolitan area the Zestimate is off by a median percentage of 9.9%!!! Considering the values of the homes in this market area that could be a life changing amount of money. If you are working with a real estate agent that uses the Zestimate or asks you how much you think your home is worth, which you may say the same number as the Zestimate, you may lose a lot of your hard earned equity in your home.

Here is a common scenario that can take place on a home that is worth $700,000.

Real Estate Agent: How much do you think your home is worth?

Potential Seller: I saw online it is worth about $640,000 which sounds great.

Real Estate Agent: That’s great you have been following the market however we could actually list for $670,000 and should have an offer accepted very close to that number.

Potential Seller: Wow! That sounds great. Thank you.

A true real estate professional should never ask you how much your home is worth. A true professional will take the time to explain to you how much your home is worth. The real estate agent in this scenario is only looking for a quick sale and not to maximize the value of the seller’s home. The seller in this scenario would have lost out on at least $30,000 in hard earned equity and in other situations could cost even more.

When selling your home you need to work with true real estate professionals. Make sure the real estate professional understands the values and trends in your immediate neighborhood. Also remember that if a real estate agent is local it does not mean they understand the values and trends. A real estate professional from outside your immediate neighborhood may have a much better understanding if they are more up to date on market data.

Remember your home is most likely your greatest financial asset. Do not let an unqualified real estate agent cost you any of the hard earned equity in your home. Ask for referrals and ask a lot of questions when interviewing potential listing agents.