“Why are these values different?” Auto valuation tools can be useful, but are not without limitations. Each valuation tool uses a unique formula to generate a value. These formulas are impacted by the source and quality of the public record data, and the frequency that it is updated. Public record data may not reflect improvements to the property such as a recently finished basement, an addition, or a remodel. Such things will impact the finished sq. ft. and number of bedrooms and baths the home has. These changes may impact the value of the home by tens of thousands of dollars.
If a home is priced properly it should sell within 5% of the list price. The value generated by Zillow, for example, has an advertised accuracy in the Twin Cities area of being within 5% of the actual sales price 53.5% of the time. What does this mean? Zillow’s numbers are inaccurate over 46% of the time. Zillow also advertises that they are within 20% of the actual sales price 91.6% of time. In the case of a $200000 home the value could be off by $40000 or more!
“How can I get a more accurate value?” Our team of experienced Realtors are here to help! We will dig in to current listings and recent sales to give you an up to date accurate value of your home. In addition to providing recent comparable sales and active listings we can evaluate the condition and updates of your home to show you what today’s buyers are likely to pay. Simply fill out the form below and one of our listing professionals will contact you to start the process.