How Online Values Are Determined - Not Reality
By Ward Adams, Feb 8 2016 10:56PM
Price and Presentation Blog
The real estate marketplace is becoming more competitive. While updated quality properties are being snapped up within days or even hours of being listed, the typical pre-owned home is listed for weeks, and even months before an offer is made. The entire process is now based on only two material influencers: Price and Presentation.
Online "zestimated" values are not anchored in the reality of the neighborhood in which the homes are located. Online values, available to the general public, are generally based on average per square foot values of sold properties within up to a mile radius of the subject home. The size, quality and demographic personality of any given collection of neighborhoods and the homes within are probably not consistent or homogeneous within any given radius search area. Million dollar homes may be averaged in with $200,000 homes. Older neighborhoods are comingled with shinny new up to date new developments. Professional appraisals or Broker Price Opinions will take into the variables and will put the home in a position to be value competitive.
Selling a home is like applying for a job, presentation in photos and in actuality is key. For example a dirty home will not garner the same response as one that is clean and freshly painted. If most homes in an area have the original lighting fixtures, one with some updated fixtures will stand out like a sore thumb. (in a good way). A new decorator front door will set a positive tone for the potential buyers visit. A home that is in a well-used “dog eared” condition will come back to bite the seller in their proverbial rear-end in time and ultimate sale price. The longer a home is on the market the odds increase for potential buyers to offer a low ball price.
Follow the advice of a qualified agent, broker or staging professional. Most costs associated with make ready updating will be recaptured in the sale price.
Clean, organized with updated fixtures a big plus!