Online Valuation Engines are estimates made by computers who know nothing of the particulars of the home, neighborhood, location

CAR passed me this nice article.

 

Appraisal sites on Net often fail to pin down accurate prices
Over the last five years, one of the newest developments in real estate is the ability for home buyers and sellers to search online for a home’s value.  Popular Web sites such as Zillow.com, Cyberhomes.com, and Eppraisal.com offer free home estimates, but some consumers and real estate industry professionals say the values calculated often are inaccurate and misleading.

 

MAKING SENSE OF THE STORY

  • Online home appraisal Web sites assign home values without knowing the features or upgrades of a home or the neighborhood in which it is located.  Some Web sites offer a price range of $20,000 - $40,000 more or less than the actual value of the home.
  • Since housing markets are local and not every home of a certain size is the same value, consumers can be misled into believing a home is worth more or less than the actual value.  Working with a local REALTOR® can help minimize inaccuracies in home values.  REALTORS® can provide local housing market data and show homeowners and buyers recent sales of comparable homes in the area, to help determine an accurate list or offer price.

While some agents report that Web estimates can educate clients and provide a reasonable assessment of market conditions and the home-buying process, working with a local REALTOR® is the best option.

 

SUNIL SETHI REAL ESTATE

Sunil Sethi / Broker, President, REALTOR, MBA / SUNIL SETHI  REAL ESTATE
38750 Paseo Padre Pwky Suite B3 / Fremont, CA 94536

www.sunilsethi.com  

CA DRE#: 01173766