Can You Trust Those Online Value Estimators?

You want to sell your Southern California home. First, you make any necessary repairs and clear up the clutter. Then, you hire a great REALTOR®. (Hint: contact me.) One of the things your REALTOR® will discuss with you is pricing. You may be tempted to look at those online value estimators to help determine your list price. But wait. How much can you really trust the accuracy of them?

Can You Trust Those Online Value Estimators?

If you type “what is my home worth” into Google, you’ll come up with literally millions of results. Some of the most popular include Zillow, Trulia, Redfin, and Realtor.com. You’ll also come up with several different “values” for your home. These can vary by thousands of dollars. Why? First of all, it might help you to understand how these estimators work.

How Do Value Estimators Work?

Like just about everything else online, they work off an algorithm. Much like credit reporting agencies, the info they gather may vary depending on what algorithm they use. Typically, they pull data from a variety of sources (public records, online listings, user info, etc.). However, they tend to start with the premise that all properties are in the same condition. They do not factor in updated features, improvements, or even if the property is rundown. That’s where you need a pro.

More Accurate Comps

Online value estimators may provide a point from which to start determining your list price. But don’t let it be the end-all-be-all of pricing. Instead, talk to your REALTOR®. They know the area and understand current pricing trends. Also, you might want to consider obtaining an appraisal before you list. A buyer gets one as part of the loan process. But this also provides the seller with the most accurate up-to-date value of their property from the moment they list it. So, the $300 to $400 you spend on an appraisal can easily be recouped when you sell your property.

Muna Dionne, your Inland Empire specialist with Coldwell Banker Realty