So I was going to only post 1 for today on market analysis in the local area, however I feel this needs addressing as it is a critical topic heard day-to-day. I'll admit, I CRINGE (eyeroll, shoulder tuck cringe!) when I heard a Zestimate quoted against a value I've derived from market research. Now admittedly, I'm not infallible. I'm subject to error, I am human and I welcome criticisms to my valuation models. That being said, THAT website is a machine that runs algorithms based on price per square footage and set market patterns and forecasts. They are nice to get you in the vicinity of price, but they are more subject to error based on things that a machine can not assess for in MLS sheets...such as condition, taste specific items, seller credits, etc.. It cannot account for subjective conditions we agents deal with on a day to day basis being experts in our industry. The following link charts their standard error of value - you as an educated buyer should take a look: https://www.zillow.com/howto/DataCoverageZestimateAccuracyFL.htm
I've randomly selected Hillsborough county for an example. The website admits that a little over half of the homes assessed in the community are priced with 5% of sales price. We will use a $200,000 home in this example. They basically say they COULD have you over priced or under priced by $10,000. Could you imagine missing out on $10,000?? Moving over a column, you see 25% of all homes (1 in 4) are $20,000 over/under priced. I couldn't sleep at night knowing I lost 20k possibly! One more column over, 1 in 10 (count you and your neighboring houses, it's not that many!) One of you are missing out on $40,000! Some worry about losing out on money to commissions to their real estate professionals, but our brokerage only charges 4.5% Commission... Total.... that would be $9,000 for a $200,000... You STILL can profit above the possible losses even at the 5% error Zillow says they have!
I can't say every brokerage is the same, but here at Viewpoint Value Realty, we've got decades of doing straight market analysis, trends and reporting to many Fortune 500 companies (including Bank of America, JPMorgan, Suntrust, and many more!) in central Florida. We will work hard to get you every dollar, and with our low commission, will help you keep some of those profits you've worked so hard to pay into!
Let me just leave some food for thought.... Zillow only columns out to 20%... there is still room for additional error in their analysis. That 11% that's left over stretches out to 30%....40%....50%.... (which is $60,000, $80,000 and $100,000 respectively). Be informed - let us help you!
#EndRant #ChrisCanBreathNow #4.5Commission