What is My House Worth?
“My House is worth $$$, I saw it on Zillow.”
A Zestimate from Zillow is an “average”. They take the highs and the lows and average them, so this range of prices generally skews the price. Zestimates are more like “Guesstimates” generated by a computer algorithm and are considered to be as much as 8-20% above or below the actual home value. And to make matters less accurate, Texas is a “non-disclosure” state; meaning that when a property is sold, the actual sold price is not made available for public record. Zillow themselves comments on their error rates. Certified home appraisers never use the properties Zestimate when they estimate a home value. Overall, Zestimates complicate things for home buyers, home sellers, real estate agents and investors.
Here’s a great video explaining Zillows Zestimates
“But the House down the street sold for”
I hear this all the time. People see a sign in the yard of their neighbor’s house and search on the Internet to see what it’s listed for. That’s the key…what it’s listed for, not what it sold for. Listing and sale price are often very different. And besides, your neighbor’s house may not compare to yours. To understand the value of your house you must know what comparable houses in your area SOLD for.
What are Comparables?
Simple. It means how alike is your house to a similar house that has sold in the same area. It must be comparable with similar number of bedrooms, bathrooms and square footage. Does your house sit on the water and your neighbor’s house doesn’t –then they are not comparable. Maybe your neighbor’s house backs up to mega power lines or it’s yours that does; the two houses are not comparables. Time sold is important too. The market is always changing and values go up and down. 3 months, 6 months or a year can make a huge difference in the price of a house.
Find out what your house is really worth by calling us today. 361-400-2491 Or visit us at Happy Heart Homes