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The Dangers of Automated Home Value Estimators
One of the most important steps in selling your home is figuring out the right listing price. Price too low or too high, and you lose time, money, or both.
More and more frequently, we see home sellers using automatic estimators to get the job done. They may seem convenient, but in reality, these estimators likely aren’t giving you as accurate a listing price as you think.
Why is Accurately Calculating My Home Price Important?
If you’re going through the process of selling your home, you probably have two main goals in mind: to sell at the best price possible and to sell within your projected timeline. It might be surprising, but pricing your home accurately can be a huge factor in deciding whether either of those goals are achieved.
If you price your home too low, you’re probably going to get offers, but you also aren’t maximizing your return on investment. If you price your home too high, it’ll likely sit on the market for weeks or months without any offers, and you may eventually run out of time and have to accept a much lower price.
Finding that magic number between too high and too low is the key to a successful sale. But there are a lot of factors that need to be considered when arriving at your listing price.
Nowadays, there’s tons of technology designed to make life easier—such as automatic home value estimators. While the idea is good in theory, in practice, it’s more than a little flawed.
When you click on your home, the most prominent thing on the page is the automated estimate, or the number they’re guessing your house is worth. To get this price, accumulated data on things like homes sold in your neighborhood and general market trends. In reality, a lot of these numbers are pretty outdated—and some are even downright inaccurate.
Automated Home Value Estimators Margin of Error
Since these calculations rely solely on data, if the numbers are outdated, then so is your home’s value. If you live in a neighborhood where homes aren’t sold very often, it’s almost guaranteed that the estimate won’t be high enough.
Another shortcoming? It won’t take into account any upgrades or improvements you’ve made on your home. For example, say you recently remodeled your kitchen—new cabinets, new countertops, new flooring—and updated all of the appliances. There’s no way for the algorithm to know that or factor it into the estimate, so it’ll still price your home the same, regardless of any updates or modifications. Seems a little unfair, right?
How We Can Price Your Home
Pricing a home is about a lot more than crunching numbers. When you enlist our help, we’ll analyze the recently sold properties in your neighborhood and value any repairs or upgrades you’ve made, all while keeping national and local trends in mind.
Want to up your listing value? We can help with that, too. Give us a call, and we can recommend the best value-boosting DIY projects to increase your home’s worth.
Ready to List Your Home?
Then we’re here to help. Take a look at our resources for sellers, from staging tips to neighborhood sold reports, request your home value analysis, and give us a call when you’re ready to sell. Contact us at 828-586-3442 today for a free home evaluation.