Yesterday I was out showing property. My customer asked, "Kelly is it true that the assessed value of a house is 75% of the actual value"? I found myself thinking about the question for a minute or two before saying No.
Today I read a great article titled, "4 Ways Online Real Estate Valuations Fail". I thought it was synchronistic to read this today and a great topic for a blog post an discussion. I think this is another example of why Realtors are important for buyers and sellers. Online valuations usually do not have the specifics and/or the details in mind that can, and should, make a difference in what a home is worth.
There are many factors that go into home values and good appraisers do a great job of taking note of those distinctions and valuing them (up or down). In areas where you have custom homes that are not the same or where a basement has been finished, a home has been very nicely remodeled/updated, this can and often does make a difference in price but not necessarily in an online evaluation of the house.
Another important feature is the location and specifically does one home have something that most in the area do not. For instance, does it border open space, have views, have a creek or pond in the backyard? Most online sources will not have this information and therefore not be able to accurately note the value.
Although there are many examples of home differences that can and should make a difference in value, today's marketing challenges offer another to note here. Foreclosures/short sales. Unfortunately some owners who lose their home in a foreclosure or have a short sale will do a lot of damage to it prior to leaving. Because this is invisible for the most part unless you have physically been in the house it is hard to note.
In understanding value and price talk to your Realtor to get a full market analysis of the house whether it be one that you own or one you have an interest in buying.
About the Author: Kelly Young, GRI
- Author's website: www.sellmyhomeincoloradosprings.com
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Kelly is an Associate Broker with Red Rock Realty. She has over 12 years experience in Real Estate in the Colorado Springs and Front Range region of Colorado. She represents buyers and sellers of real estate buying homes, land for sale, mountain getaways. Specific areas include: Black Forest, Broadmoor, Colorado Springs, Divide, Falcon, Downtown, Manitou Springs, Monument, Old Colorado City, Westside, Woodmen Hills and Woodland Park. You can reach her at 719-226-0126 or by clicking "email the author" above.
