Buyers and sellers both want to know, “What is the home value?” Depending on which side of the fence you sit usually determines which number you want to believe. That’s human nature, of course. However, let’s not ignore facts and believe unrealistic expectations whether they be low or high.
The actual market price for any home is determined by what a ready and able buyer is willing to pay and a seller is willing to accept for a particular property at a given time. Real estate agents don’t determine value and appraisers do their best to establish a number in a subjective world of real estate. Any expert will point out a home’s worth is is based on actual data (recent closed sales of comparable properties) as well as the role it serves for the people that will live in the home.
Buyers’ and sellers’ motivation and desires play a role, but that can be challenging to calculate. Some buyers may be willing to pay more for a certain location, a first-floor master bedroom, or particular water view. Some sellers would like a potential buyer to appreciate their investment in a state-of-the-art audio system, elaborate crown moulding, or an outdoor kitchen.
So, how do you establish actual market value? Call a qualified professional Realtor to assist you – someone who works full time in the marketplace and has a finger on the pulse. An agent can predict the sales price within $5,000 to $10,000, which is far more accurate than the automated valuation models. Companies like Zillow rely on logarithms and mathematical averages but cannot possibly factor in condition, view, upgrades, improvements, or the interior details of a property.
Even Zillow understands the limitations of a Zestimate – a price range is generated with a sampling error of plus or minus 7.5% which means a $300,000 home has a 95 percent probability of being “worth” somewhere between $277,5000 and $322,500. That is a $45,000 margin on a $300,000 property. Furthermore, all MLS jurisdictions do not cooperate with Zillow and other AVMs (automated value methods), so their data is far behind the actual market and the accuracy suffers.
We work with both buyers and sellers. Without obligation, we look forward to the opportunity of providing up-to-the-minute valuations of a home, villa, condo or property that you are considering to purchase or list for sale. Our finger is on the pulse of the Naples and Bonita Springs real estate market and ready to share our local knowledge with you to make the best decision.
Thinking of Selling your home or condo in Naples? Click Here for a FREE Market Valuation.
Tim Cranch at (239) 272-4848 or TimCranch@StepsToTheBeach.com
Ellie Penaranda at (239) 776-5077 or Ellie@StepsToTheBeach.com
LOCAL KNOWLEDGE. GLOBAL MARKETING. RESULTS.