Home Values-How Accurate?

 

how-accurate-is-zillow

One topic that comes up frequently when talking to people about home values is the accuracy of the homes values you find on the internet… you know the ones I’m talking about: Zillow, Redfin and others. I usually find myself explaining how those websites calculate the value and how most of the time you can’t trust them. But today I want to share with you a recent experience I had to illustrate to you how wrong they can be:

I got a call from a family friend who is interested in selling a property, so I set up an appointment to view the property and talk with the client. Before my appointment I pulled up the property information and reviewed comparable properties that are currently on the market as well as others that are pending and have recently sold. I also pulled up the property on a few websites that offer value estimates. Let me be clear- I do not use these estimates to help me determine a value, but rather because I know that 99% of the time clients have already looked at these sites and I want to be prepared for them to bring this up during our discussion. Here is a rundown of what I found:

The tax assessed value for this property in Felida is $348,000 for 2017.

Zillow’s Zestimate: $632,000

Redfin’s value: $386,000

How could they be so different? Short answer> they aren’t accurate!!

After reviewing the comps with my client and talking to them about how the location, condition and curb appeal will effect the sale of the property, I let them know what my opinion was and we came up with a number in the $400,000’s.

Bottom line, a home is worth as much as someone is willing to pay. But if you really want an accurate estimate of your home’s value, or the value of a home that you are thinking about buying I would STRONGLY suggest that you talk to me or another expert on local real estate.

Stay tuned! I will update you on what the real value of the home is once we get it sold.

 

Christina

Posted on January 5, 2017 at 11:41 pm
Christina Waterhouse | Category: market | Tagged , , , , , , ,

Another Bubble?

When chatting with people about real estate the conversation commonly finds it’s way to “The Bubble.” Many people are concerned about rising values of homes and think that it indicates we are on our way to another bubble. When I found this chart I knew I had to share it, as it is very helpful in explaining where current home values are:KCMThis graph shows what home values would be in a normal/stable market; this is represented in white. The black bars show what home values actually were over the last 16 years. As you can see, even though home values have been rising the last 4 years, we are still below where values would have been if there never was a bubble and burst. Due to this, many experts believe we are not headed towards another bubble.

In Clark County we also have other economic factors that help support our home values rising, including a growing job market, low inventory, as well as overall more affordability as compared to other metro areas along the West Coast.

 

I hope this was helpful. If you have any questions, please call me!

Christina

Posted on November 4, 2016 at 12:07 am
Christina Waterhouse | Category: market | Tagged , , , , , ,

Is Real Estate a Good Investment?

Many people are sceptical of the housing market. They have been the bubble of 2000's and then also the burst of 2007. A home is the biggest purchase one usually makes in their lifetime, so it is no surprise that people go into home buying a little scared. But is it risky to buy a home? Is real estate a good investment? You may be surprised, but real estate is one of the best invesments you can make! And I'm not talking about the short term flip that was going on like crazy during the bubble. I am speaking of the long term investment. If you look at the numbers, there really isn't anything better to invest your hard earned dollars into.

 

As you can see from this above graph many people love the stock market, but is really where you want to be putting YOUR money? And what to the experts say?

Posted on September 19, 2013 at 10:14 pm
Christina Waterhouse | Category: Uncategorized | Tagged , , , ,