Tuesday, August 21, 2018

Why Today May Be the Best Time To Sell Your Home

MARKET UPDATE


  • This may be the BEST TIME in years to sell.
  • Most market cycles last 10-12 years.
  • The DC Metro area market has been on a great run since 2009.
  • Interest rates are going up - when they get too high, it'll be harder to sell.



Median price vs Number of Sales


THE SMK REALTY BENEFIT


  • EASY and hassle free.
  • No fees or commissions.
  • Sell AS-IS - No repairs required.
  • Leave unwanted items behind - we work with local charities too!
  • Assistance with relocation.


CALL NOW (301) 329-6500


  • Schedule a FREE in-house, no-obligation consultation.
  • Often times we can NET you more money than other buyers in the market!



Wednesday, August 15, 2018

Why RedFin/Zillow/Trulia Estimates Aren't Good Enough



Image result for home value graphic
What Is My Home Really Worth?



Each time we are either looking to buy or sell a home, one of the first things we do is try to evaluate the value of the home.  It's a natural and logical first step - you need to know how much something costs (or should cost) to decide on buying or selling. 

As real estate information starting becoming more and more available on-line, inevitably, the larger platforms started to provide a very nifty feature to provide a sense of the estimated value (e.g. Zestimate, RedFin Estimate, etc).

These tools are great, but more and more, we're seeing people like you and I using these tools almost as a definitive price -- in the sense of replacing an official appraisal.   These estimating features should be used as guides to get a general sense of the lay-of-the-land, but in no shape will these numbers provide an accurate number to list your home (or provide you an accurate value of your home) -- here is why:

1. The Finishes and Recent Upgrades

All of these platforms use automated computer algorithms to determine the value of your home.  This can occur whether or not you allow these computers to view the interior of your home. Currently, non of these platforms have the ability to evaluate your finishes inside your home -- whether or not you have provided the photos to show them or not.  Without this key piece of information, a valuation is just too generic to provide any sense of accuracy for something as important as your home.

2. Possible Repairs Needed

Depending on what needs repairing within the home, this aspect can impact the value quite significantly.  If you have 1 broken window, it will probably have a low impact on the overall value.  But if your central HVAC unit isn't working, this could have a significant enough impact on what your house will actually sell for.  Zillow, RedFin, Trulia, etc. currently do not have the capability to factor these individual items into their estimate and therefore will not be able to provide you an accurate figure of your home -- especially if the home needs a little TLC.

3. Unique Features

These various platforms use a mixture of user data and public/county data to formulate a picture of your home.  There may be various important features that don't get published online through the county data feeds.  For example, perhaps you finished your basement and installed a kitchenette down there.  These platforms may not know what you did, or understand some of the unique features that sets your home apart from your neighbor's.  Depending on the feature, this could add 10K to your value - so the Zestimate could be lower or higher than the actual value.

4. Sales Information

All of these estimate algorithms are based on data: Transnational/Sales data to be precise.  In certain markets, the house turn-over rate (how often homes transfer ownership) could be very high - for example, in metro areas or cities.  In this case, there is a good amount of data for a computer to understand what a fair sales price could be.  In certain rural areas, where the house turn-over rate is low, there may not be enough sales data for a computer to make a determination on what the value of your home is.

Can't Just Rely On Computers

There are many reasons why these estimating tools cannot be used to simply establish (on it's own) the true value of your home, but we've just listed the 4 important ones.  Bottom line, they're great for establishing a general baseline.  Think of the numbers as averages, and use them as guidelines not as true values.

Our business is built on the skills to evaluate the true value of homes very quickly and effectively.  Nothing can replace an in-person evaluation to determine what the value of your home is.  And although an appraisal company will charge you for conducting an appraisal, if your home is within the D.C. Metro area, we'll provide you an analysis free of charge if you're interested in selling your home -- absolutely no obligations or commitments!

Call us today to see how we can be of service - (301) 329-6500

DC's MARKET TREND

A big part of owning and maintaining Real Estate effectively is to know your landscape, and have a clear understanding where are we projecte...