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Why Sellers Need a Realtor to Price their Home

Why Sellers Need a Realtor to Price their Home

     
September 11, 2014  |  Real Estate

The internet offers you the convenience of finding how much your home is worth through websites called “automated valuation mode” (AVM). These sites use statistical modeling strategies that allow for calculations of property value by comparing it with other similar-sized homes that have recently sold in your area or neighborhood. These tools crunch their data with numbers or statistics available publicly that are taken from several listing services, and then combine them with regional trends to determine a sale price for your property.

Now, given the AVM sites and how easy it is to know the value of a home, here’s the question that a seller asks – Do I still need a real estate agent to assist me with home assessment?

The answer is a resounding YES. There are things that Realtors can do that the internet, believe it or not, just can’t do for you as a home seller.

Here are the reasons why:

 

Other determining factors in pricing a home that the AVM do not necessarily catch

Verifying a property value is not made up of only one factor. There are several pieces of information that compose the valuation of a home and most of these data are property-specific such as upgrades or renovations and the quality of materials or furnishings.

It’s true that tools can give a number based on the area comparing it to public information on the sales of home in that locality. However, these sites do not take into consideration more specific factors like safety of the neighborhood, availability or proximity to good schools, restaurants, etc., proximity to parks and walkability ratio. The AVM tools simply cannot know these things and only a Realtor would be able to put together such findings for you.

AVM tools unfortunately, are not always accurate

Although most real estate agents use these home valuation tools to start an assessment, majority of the groundwork and all those nitty-gritty details are done after the (initial) results are revealed. Simply put, the serious work starts with the Realtor around.

When using AVM tools, expect some inaccuracy. These tools could be off by around five percent to twenty percent according to a study made by Standard & Poor’s Ratings Services. One reason is that data may not be up to date to keep up successfully with a fast-moving market.

Hence, if you will solely base your home value on this, you could end up overpricing or undervaluing your property, which consequently could end you with no buyers for a too high price or no profit for an under market value.

Each home is different from the other and must be valued accordingly

As mentioned above and should be reiterated – wrongly calculated and you risk deterring buyers for your home and on the other side, not getting the money you deserve on a sale.

A Realtor’s experience and expertise are indispensable

Realtors are trained to perform a comparative market analysis (CMA) for every home they put in the market. This entails going and seeing the property in person and literally inspecting the home, neighborhood, and studying other factors that will help determine the ideal listing price range of the property. Tools cannot explain in length the reasons for arriving at such a price, whereas the presence of a Realtor will shed light on many questions or concerns you might have. The Realtor can explain how the selling price is the right price and can make precise comparisons with the previous sales in your area, effects of the market trends, and the real estate status quo.

The Realtor makes their CMA based on their knowledge of the local market and the considerations that affect pricing such as lot size, lot orientation, general condition of the home, tax-assessed value, property features, and no. of years.

 

 Source: Inman News

 

Are you thinking about selling your Colorado home? At The Blake Team, we are known for our expertise in selling homes within the Greater Denver/Aurora Area. We can also provide a free valuation of your home with absolutely no obligation. Call us at 303-880 8815 or email us at blaketeam@blaketeamdenver.com

 

 

 

 

 

About the author

The Blake Team is a full-service Real Estate team based in Aurora, Colorado specializing in working with Buyers & Sellers, foreclosures/HUD, short sales, and luxury properties. A team with years of experience and an impressive success rate that made it the No.18 real estate brokerage in the nation, as well as the No.1 Keller Williams agent in Colorado led by CEO & Founder Lisa Blake. The Blake Team is your No. 1 choice for getting your dream home!