What is your home worth today?

Just the other day I was chatting with a client about the value of his home.

He was quite concerned his Zestimate (online property value calculator) informed him he owed more on his loan than it was worth.

I told him there was no reason to worry just yet.  Then I rushed to my office to do a little research.

I returned with some good news, his house was actually equitable (worth more than the balance on the loan).

Now do not get my wrong, these online property valuation calculators are a really neat but are the source of much unnecessary despair.

Here’s why…

Never Stress (or Celebrate) Over a Computer Calculated Home Valuation

Zillow and other internet home valuation calculators have very little information to calculate their home comps on.  This means they make major assumptions.  As such you should have very little confidence in the home valuations they generate.  I can tell you right now about all these calculators have to base your home valuation on is,

1. Most recent sales prices.
2. Square footage
3. Location

Let me illustrate why that is not enough information to make a confident home valuation…

My client’s home had a low comp because his home was a 4 bedroom house.  Many of the homes in his community were 3 bedroom though.  The three bedroom homes were selling for less than the 4 bedroom homes.  Yet Zillow could not tell them apart and provided my client with a low home valuation…  Nearly $10 per square foot lower!

Here’s another example.  I bought my house on a premium lot.  This lot has a beautiful mountain view and a upgraded floor plan.  The other houses in the community are very nice but do not have either of these upgrades.  Zillow regularly values my home for more than $50,000 less than what the same lots with similar floor plans are currently selling for!

This is because Zillow and other online home valuation calculators have very little information to base your home valuation on.

So I am sure you are wondering, “how do you get an accurate home valuation?”

Great question, let me explain…

Getting an Accurate Home Valuation

So first let me explain ANY home valuation is really an educated guess.  You really cannot say with complete confidence what a person will pay for a property until after they have paid for it…

So that is the foundation of how I perform a home valuation!  I look at homes that have recently sold.  These are inside a database I pay for each year along with mountains of data including list of features, location, and time sold on each home.

But just looking at recent sales is not enough to draw much of a conclusion.  That’s where the educated guessing starts to come in.

I narrow the list of sold homes down to ones as similar to yours as possible.  This is done by placing various filters on the list such as,

1. Homes with same number of bedrooms
2. Homes with same number of bathrooms
3. Homes with nearly the same square footage
4. Homes of similar age and make
5. etc.

I’m looking for that sweet spot where I have around a 6 to a 12 very similar properties to yours.  This gives you a MUCH higher degree of confidence in your home is worth right now.

We look at the list of comparable homes to yours.  From this list we can see how long it took for these homes to sell and what they sold for.

This gives us a much more confident idea of what your home is worth than Zillow as it is based off of more information.

Here is What You Need to Do Next

If you are curious what your home in Pima County Arizona is worth  give me a call.  My number is 520-344-3481.  I will get you an custom home valuation for FREE.

PS.  What do you think of Zillow?  Have you even used it before?  Tell me in the complement below.

PPS.  Make sure to share this with anybody who would like to know what their home is worth.  Share buttons are directly below this post.

They are held to stick ethical codes and laws written to protect you.  Choosing the right agent is easily the most important factor in selling your home.  Here’s a few things you should consider when interviewing agents to sell your property…

Who’s Qualified…

What is Agent’s License Number?

Selling your home with an unlicensed agent can get you into serious trouble.  You can verify the status of agent’s license in Arizona by visiting this link, Arizona Department of Real Estate.

What Designations Does Agent Have?

There are numerous specialties within real estate.  You’ll want to choose the specialist that best fits your needs.  This link contains a list of real estate specialties and their designations, Real Estate Specialist Designations.

Finding an Effective Agent…

What is Agent’s Track Record?

You will want an agent with a successful track record of selling homes.  Ask them about days on market for their listings as this is a good indication of how effective they are in selling homes.

Don’t throw out new agents as they typically have more time for you than experienced agents with more clients.   Plus, most new agents have highly experienced mentors so ask them about their mentor.

How Knowledgeable is Agent with Your Community?

Your agent will be advising you on how to price your house competitively.  Drill them for community specific answers to questions like…

• What is average time on market?
• What is average sales price?
• What active home listings are my direct competition?

The more knowledgeable your agent is the more effective you will be in getting your home sold.

Communication is Everything…

Is the Agent Organized?

Real Estate is a very complex business with volumes of paperwork as well as tight deadlines.  Any errors in this process can easily land you in court and cost you thousands of dollars.

It’s vitally important your agent is detail oriented, prompt, and highly organized.  Drill them about the sales process and paperwork.  They should not miss a beat.

What is Agent’s Marketing Plan?

Your agent will be representing you in negotiations so they should come off as a caring courteous person, with your best interests in mind.

They will also be representing your property in their marketing plan which is only as effective as it’s reach.  So ask them on how they plan to present your property to buyers.

Do they actively advertise in any publications, websites, blogs, videos, Multiple Listing Services, open houses, flyer’s, etc?

Backup Plan…

Who’s the Boss?

Your agent should be there for you when you need them.  However, you’ll need a backup in-case you cannot get through so ask for their boss’s (broker’s) contact information.

Unfortunately, communication issues are one of the largest complaints in real estate.  Don’t let poor communication hold up your listing.

Choosing an agent from a larger brokerage / real estate company will mean the broker can quickly get your listing back on track should worst come to worst and you have to fire your agent.