How Good Are On Line Home Estimates

How Good Are On Line Home Estimates

Can You Trust On Those On-Line Home Estimates

Ever go to one of the big Real Estate web sites and type in your homes address to get an estimate on your home’s value? You hit enter and start to do your happy dance because it says your home is worth more than twice what you paid for it? And then have some agent tell you it’s not? Who do you believe?

Shouldn’t a big, nationally known company with data and tech like no other know more than Rhonda Realtor?

Maybe, but not always.  One of the big sites I looked at said their estimates are within 5% of the final sale price 52.9% of the time, within 10% of the final sale price 73.3% of the time and within 20% of the final sale price 85.8% of the time – nationally.

Okay, let’s think about that; being within 20% on a $200,000 home is a swing of $40,000 - in either direction.

Why? If they have all the data about home sales in your area how can they be so far off the mark?  Let’s go back to math class for a minute and say you and nine of your neighbors take a survey on the number of pets in your household. You and four others report one pet, four different neighbors report two pets but that last neighbor counts all 30 of his goldfish as individual pets. Your pet average went from 1.5 per household to 4.5 because of that one really high number! It can just as easily go the other way too. If most of the numbers in the database are high, one low number can skew the average much lower than you would expect.

So am I saying don’t believe the estimate? No, not really; we use an on-line home estimator on our web-site too. What I am saying is feel free to get the on-line estimate. It’s a great place to start the process of deciding if it’s time to cash in on the home equity you’ve built. But don’t take it at face value, it’s just an algorithm and it isn’t foolproof.

Talk to someone local and listen to Rhonda Realtor when she gives you a different value because she’s looking at the specifics about your home and what may make it worth more or less than what the internet told you. She will be looking at all the variables in play and giving you a more accurate starting price and she might offer simple ways to increase the value a bit.   And who knows, she might even actually agree with the web-site!

Kelly Pangburn Headshot
Phone: 231-519-1872
Dated: July 16th 2018
Views: 149
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Pangburn Properties, Inc.
28 South Maple Street, P.O. Box 8
Grant, MI