Zestimate or Realtor CMA?
March 26, 2018 | Melissa Shively
I hear it all the time..."but Zillow says...". Don't get me wrong, Zillow is an amazing tool for home buyers and sellers alike to start their research when dealing with the real estate market in their area. The important question to ask is; how does Zillow get it's information and can you trust this information when determining what price to list your home for?

Zillow receives information about property sales from the municipal office responsible for recording real estate transactions in your area. This mean the county office, not directly from the Multiple Listing Service (MLS) office. Why does this matter? In the case of property sale prices, it doesn't effect that information much. However, this means that Zillow is not directly connected to your area's MLS. The information you are receiving from Zillow may no be up to date and you may not be seeing pertinent information such as price history and tax records.

Also, since Zillow is an Automated Valuation Model (AVM), the name given to a service that can provide property valuations using mathematical modelling combined with a database, it is impossible for Zillow to take into consideration special features, such as remodeling, cosmetic updates, age and condition.

So now, let me ask...would you trust a Zestimate? Realtors are trained professionals that take into account the intricacies of the area or the upgrades on the home. We compile this information in a Comparative Market Analysis (CMA). Also, a trained Realtor is able to show you what and  why 123 Main St. may have sold for more or less than what your home's market value currently is.

As a Realtor it is my job to make sure you don't list your home too low or too high. There are things to consider when pricing your home such as location, condition and price comparisons. Buyers educate themselves by viewing many homes and typically shop within a $25,000 price range. It's important to make sure you are priced in the range for exposure to those buyers most likely to make an offer.

A seller never want's to be faced with a price reduction. Homes that are overpriced always result in a price reduction and buyers are less likely to make a good offer on a home that has been reduced.

For a free CMA, please contact me or visit localboiserealestate.com/what-is-my-home-worth



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