There's no question that the internet has revolutionized the entire world of real estate.
For the most part these changes have all been for the good, enabling sellers to reach the largest possible relevant audience for their property extremely quickly. For buyers, choosing a home has consequently never been easier.
One aspect of technology that has led to issues on occasions, however, is an over-emphasis on pricing estimates given by the various generic pricing websites.
Now let me say from the get-go that these sites are not only great fun, but also quite useful and enlightening in terms of getting some kind of broad idea about where your property sits relative to others in your neighborhood. We even offer a free home valuation at the base of this article, but that too is for a general overview of things and we always prefer to ultimately visit the property to get a completely accurate picture.
Generic site pricing can lead to issues when the seller is convinced that the price given is what the asking price should be, even after an experienced agent has said that the market value is less than the online estimated figure.
Much of the problem lies in the way that generic sites work and one of the biggest problems is that they all arrive at the price calculation using slightly different methods, hence why you might get a spread of pricing if you try multiple sites. That, in itself, suggests that inaccuracies can and do occur. Indeed, it has been reckoned that prices are commonly 10% adrift of the "real world" price and there have been many situations where the fluctuations have been much wilder. And, yes, prices can be too low and well as too high!
These sites rely on historical info, have no idea of the actual current condition of your house and, if the county assessor's office doesn't know about them, will not take into account any improvements you've made to the property. Talk about a guesstimate...
By all means, get an online price for a - very - rough ballpark figure, which is especially useful if you haven't valued your home in years. The next stage should be to get in touch with a seasoned agent who has up to the minute market knowledge and knows how best to price your home.
Here at the Nicoli Group, we place huge emphasis on pricing your home just at the right level. This takes into account current trends, including recent sales of similar homes to yours in the area, enabling us to arrive at a pricing strategy that pitches your home just at the right level to attract buyers, thereby greatly increasing the possibility of multiple offers, quite often above the actual asking price!
An overpriced home is very unlikely to attract significant numbers of viewings, as it will appear to be the most expensive option and not competitive with other similarly specified homes. An underpriced home will generally attract a lot of interest, but there's then the likelihood of not maximizing the return, which is completely avoidable and unnecessary.
Pricing is always a delicate balancing act and no computer has yet been able to replace the experience and knowledge of a top performing agent. Why not contact us today and we'll be happy to visit you and give you an accurate valuation, taking all the relevant factors into account.