Diablo Gazette March 2019
What is my Home worth?
These days you can google “what is the value of my home” and get a range that is so broad that it’s difficult to know where you are in the spectrum. Just googling a home I own, the value on eppraisal.com came in between $659,158 to $891,802. A range of $232,000! Another popular home zestimate site has a range shows a $72,000 difference. What’s the problem? Is it that the data does not show permits for updates, condition factors, amenities such as pools, solar, accessory buildings? Is it that the data is picking up sales in the recent past, or longer periods of time and thus the range is skewed as to it’s value if you were selling your home or buying a home right now. With the addition of Big Data to the system, it can be overwhelming to the point of being too broad, such as in my estimate example. Most of the sites have disclaimers to tell you their data is not very accurate. So, what is the value of such sites? Are they used by buyers and sellers to determine value of homes? Is it complicating the whole question of value?
As Software Developer Raymond Yee, Ph.D. defines it “Big data enchants us with the promise of new insights. Let’s not forget the knowledge hidden in the small data right before us.”
If you are buying or selling, buyers prefer more focused and recent data when arriving at a value to offer on a home. Often, they are comparing a home to others they’ve seen and maybe offered on or lost to other buyers. That is current market data. Appraisers must use comparable sales within the past 3 months, closest in type, style and amenities to the subject property and within a 1 mile radius. When buying or selling you may want to use “comparable” sales as a method of determining value of a similar home. As quickly as the market changes, especially in California, from a month to 3 months is typically the data utilized for determining current market value.
Do you really want a computer to decide your home’s value without the benefit of the experienced Realtor representing both buyers and sellers in actual real estate transactions? Active (more than 20-25 sold homes a year) Realtors add insight into the nuances of the market that are not evident in an algorythym. They know what buyers are looking for, how they are making offers, and the terms that are prevalent in the market. They know what sellers are receiving and concessions being given if any. This information is vital to a good negotiation. In short, we use Data to help us formulate pricing, but it is refined when the nuances of a market and analysis are blended in. IF you want a real estimate of value from a real professional in the market place, call a licensed California Realtor. We are here to help.
