By Jeff Setlow
Realtor/Founding Partner at GetAnAgent.com
April 24, 2013
Don’t be fooled by an automated property value available on many popular real estate websites today. Determining the market value of a property can be a difficult chore. An experienced appraiser or Realtor will tell you that there is an element of art or subjectivity to the process that requires a human touch and is best left up to local professionals. Financial institutions and professional investors do not rely on an automated “guesstimate” and neither should you.
The backbone of any property valuation is the selection of comparable homes and the adjustments made based on differences between the target property and the chosen comparable properties or “comps.” A detailed statistical analysis based on experience and local knowledge of the market and chosen comparable properties is essential in determining “market value.” There truly is no shortcut to this important process.
Many websites that offer an instant home value rely on a set of default assumptions to create a general algorithm that is applied to all properties in a similar way. While it can be fun to check out home values quickly with a click of the mouse, this can be a significantly flawed approach to determine value as any industry professional will tell you. These instant valuation type websites encourage their users to seek the advice of a licensed appraiser or Realtor (usually in the fine print) to determine market value.
Let GetAnAgent identify the right local professional to help you determine the market value of any home that you are interested in buying or selling for free today!