Automated estimates can help when selling your home. One of the first things you’ll need to do is find out how much the home is worth. This will help you in setting the right price for it’s sale.
In order to get an idea of your home’s worth, you can turn to automated estimates and home valuations. Here are a few tips to keep in mind when looking to determine how much your property can sell for:
Use AVM tools
There’s a wide selection of automated valuation model (AVM) tools on the Internet. You can use them without the assistance of a real estate agent or an appraiser. These include the following:
- Zestimate – Zillow’s home valuation tool runs a proprietary formula that takes public and user-generated data such as location, market conditions, and special features into account.
- Trulia Estimates – This application relies on a host of information, like recent sales of comparable homes (comps), number of bedrooms and bathrooms, square footage, and so on.
- Home Value Explorer–Freddie Mac’s AVM runs on a proprietary algorithm and has extensive coverage of more than 3,100 counties and about 81 million property records.
- Home Value Estimator – A JP Morgan & Chase product, this AVM only requires you to key in your property’s address to be able to project its estimated value.
- RealEstate ABC – This tool gives you a Google map of your property and similar homes, along with a list of comparable homes with key data.
AVMs can generate information in a matter of minutes. As you are working within the privacy of your own home, this makes them convenient to use. They provide a quick and efficient means of staying informed on comps in your area.
Understand their limitations
When you start using more than one AVM, you’ll find that each turns up a different estimate of your home’s value. This is because each of these tools uses their own unique algorithm. Some work better with certain data sets than others.
Moreover, it will be difficult for AVMs to come up with good estimates if your home is an outlier of sorts. The absence of comparable homes will make pricing tricky, not just for computers, but for appraisers as well.
You’ll also need to remember that AVMs don’t convey the qualitative attributes of your property and the neighborhood it’s in, and such attributes also have a bearing on your home’s value.
Think of automated estimates as a starting point
Keep in mind that these tools only provide varying estimates. They are not substitutes for actual appraisals. In fact, most of these AVMs come with disclaimers. Their host websites state that the tools are only meant to supplement appraisals and comparative market analyses.
However, if you’re looking for sources of data that give you an initial idea of your home’s value, AVMs are a good place to start. With these tools at your fingertips, you’ll be a step closer towards determining the right asking price for your property.
Do you think it’s time to put your home in the market? Get a home valuation from a certified property valuator, call/text 760 622 5087 or send an email here.