Don’t Settle For The Average Home Valuation…
Did you know when you request a home valuation online, most agents will spend less than 5 minutes in determining the value, and then one of two things will happen:
- They will call or email you the amount they think your home is worth (if you’re lucky)
- Most likely, they will insist that they can’t properly determine value without meeting you and seeing the home.
While the latter is true, it’s nearly impossible to determine a precise value without seeing the condition of the home, talking with you about your home will give us a pretty good idea. Of course visiting the home will help ensure the most accurate valuation.
What about Zillow?
Zillow is hit or miss. I’ve seen “zestimates” that were pretty accurate, and some that were off by $100,000 or more.
What good is a number?
Let’s assume we used our knowledge and expertise of the local real estate market, and also came to your home to see the condition and ammenities and how they compare to similar properties, and determined came up with a very accurate home valuation. Then what? Is that all the info you need?
The “Superior Home Valuation” Advantage
We think the answer is “no,” and that we’d being doing you a dis-service if we stopped at that point. Why? Because that value doesn’t tell the whole story. Let’s assume for a moment that after doing the research and visiting your home we determine your home is worth $465,000. Does that mean when you sell the home you’ll receive a check for $465,000? No chance. Typically, the property has existing loan(s) that have to be paid off that will take a large portion of the money a buyer pays for the home. And even if you’re lucky enough to own the home free and clear, you’ll still have closing costs that reduce the “net proceeds” that you’ll receive at closing.
Do you know how to determine the amount of closing costs when selling your home? Most homeowners don’t, but wouldn’t you agree that your “net proceeds,” the amount you’ll actually receive after paying off existing loans and closing costs, is just as important, if not more important that your home’s value? Looking back at the above example with a value of $465,000, if there were no loans on the property your net proceeds would be around $433,000. If you have a $400,000 loan on this same property, your net proceeds were just reduced to $33,000, a far cry from the home’s market value. And since most sellers are using their net proceeds toward the downpayment on their next home, we tend to think net proceeds is just as important as market value.