You and I both know you’ve done it. It’s no secret. Everyone is doing it. You go to your web browser and type in the Z word. And then you type in your address. And then the magicians behind the screen tell you what your home is worth.
Except they don’t.
Because they’ve never walked in your home.
They haven’t seen your finishes and your home’s condition.
They can’t smell your home.
They don’t know about the schools or neighborhoods.
Shall I go on?
Friends, the algorithms are wrong. They can be way off track and very upsetting. So, how do the “magicians” determine the value of your home? Here are some important points to remember.
- There’s a combo of property tax records, home sales, and user-submitted information feeding the algorithm.
- The algorithm uses older comparables, never considering when a property was sold. Some comps can be more than 12 months old.
- Renovations, additions, and other changes that affect value are often omitted.
- In a newly built home or near some? The algorithm has no idea what the quality of your construction is.
Are you picking up what I’m putting down here? Computers and algorithms are great for many things. But when it comes to a realistic listing price for your home (likely your largest asset), don’t rely on a mathematical equation. Pricing a home is both an art and a science.
What to know what your home is worth? Click here.
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