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Zillow Vs. Reality
Zillow is a very popular Real Estate estimation service…but does popularity mean accuracy?
As a real estate agent, I love helping people find, improve, sell or invest in real estate. I think I have the best job in the world. Every day, I get to walk alongside people who see a preferred future and have asked me to help them get to that preferred future.
Along the way, I get to answer many, many questions. And questions about Zillow are usually the first ones I get to answer.
Let’s clarify a few misconceptions about Zillow…
Since I am a positive person, I’ll start with Zillow’s positive attributes. Zillow brings together a ton of information in one place. If a buyer wants to make a first glance at the homes for sale in a given area, Zillow is thoroughly adequate. If someone wants statistics on how prices have changed in a zipcode over time… than Zillow works.
If a buyer wants a quick look at square footage, room numbers and age of a home than again, Zillow gives some great information.
Zillow’s proprietary calculations look at the LAST SALE price of a particular home and compare that price with CURRENT sale prices of similar homes in the area. From here, Zillow calculates their Zestimate.
Oh, one other good point about Zillow is they clearly state that this is an estimate and not an actual value.
Now, let’s talk about the reality. Zillow can not know if you have spent $60,000 on home improvements. Likewise, Zillow can’t tell if you have significant water damage, a crack in the foundation or an old roof.
This is where real estate agents like myself come into the picture. We spend our days looking at and evaluating the values of a home. We are able to take into consideration the up-keep of a home. We are able to actually look at see that the shag carpet hasn’t been replaced since 1960. We look at comparable sales of homes in the neighborhood to give a true context to the prices that are requested.
Also remember that Zillow is funded by ad revenue. Over inflating someone’s home value is a sure way to get people to bring their eyeballs back to a site. The more eyeballs Zillow delivers, the more money they can charge advertisers.
Pricing your home for sale or knowing what price to pay for a home is what real estate professionals spend all our time discussing. When the right time comes, give me a call and we will sit down and make sure your next real estate transaction is your best real estate transaction.
Don’t Turn Remodeling Projects Into a Money Pit!
A great article came across my desk the other week about the home featured in the mid-eighties movie “Money Pit.” This was the hysterical movie with Tom Hanks and Shelly Long who were two yuppie home buyers who decided to buy a fixer and …well, fix it! Every home-fixer on the planet laughed until they cried at their never-ending parade of disasters. Of course, the reason the laughter turned to tears is we all remember the tears we’ve shed working on a ‘fixer-upper.’ This article focused on the fact that the same house used in the movie was recently sold for a huge LOSS. The couple who purchased the house set out to remodel, and spent close to $6 MILLION fixing up the home they purchased for just over $2 million.
Eventually, our owners decided to put the home on the market and asked a cool $12 million.
(Crickets)
And so they dropped the price.
(Crickets)
And…dropped it again. And again… until they finally sold the property for $3.5 million dollars.
So what is the moral of this story? I’m glad you asked.
Remodeling is a two-edged sword. The upside is you invest money to get the home that meets your needs and hopefully satisfies a few desires. The downside is, something you may love might not be something a potential home buyer may even like. The experts looking at this story all agree the couple spent too much money on their very personal, very ornate tastes. They added en suite bedrooms, an elegant pool (complete with a pool house), stunning fireplaces, and a modern, open kitchen. Plus, their desires were to create an over-the-top entertaining
palace that would reek excess and elegance. Sadly, the experts agreed that they over-developed for the time and for the area.
How then does a couple know what they should remodel and how much should they spend? They should make sure to have a friend like me in their corner.
As a rule, bathrooms and kitchens are safest, but be sure that your remodels don’t push your price above what your neighborhood can sustain when your home goes for sale. And, when it comes to return on investment, pools sink your return on investment to the bottom. I’d love to talk to you before you remodel if you are thinking of making a few changes before you list! I
spend all my days looking at homes like yours and seeing how buyers respond. Before you make any changes- give me a call!
Thank you for reading…and keep me in mind if you are looking or thinking of listing. I’d love to make the
whole process easier and make sure you get the best financial result!
Fall Home Buying Could Mean Falling Prices!
Contrary to popular belief- buying homes in the Fall and Winter can be the best times if you know what to look for…and what to avoid.
Fewer Buyers Mean More Motivated Sellers!
This time of year, usually means the families with kids are already situated. Those owners of homes that didn’t sell will be extra motivated. Find a few homes you like and start the discussion. As your realtor, I can make sure you are negotiating from a place of strength to maximize your budget!
The year-end clock is ticking!
Many sellers will want to have their home sold by year-end! Tax considerations for the seller are a very real financial issue.
For a buyer, ‘Auld Lang Syne’ should be your theme song. Certainly, jump on the house you love at the price you can afford…but if you have a little flexibility in your timeline, waiting till the clock strikes twelve is to your advantage!
Winter Exposes Many Flaws
It’s easy to make a home look perfect when the grass is nice and green. But no leaves and drab gardens will give a buyer some more information and negotiating room. If the seller has been watching their home go from glorious Summer to drab-and-dreary Winter, they may start to panic a bit.
‘Days on Market’ Mean Dollars Off Price
Memorial Day…Mother’s Day…Father’s Day…Fourth of July… as those Holidays go buy and Thanksgiving and Christmas approach, a seller may get nervous. Especially as the Calendar says December and January.
If you have time on your side, you can score an amazing value if a seller has to get out from under their property. As your realtor, I’ve been watching homes age on the market and can inform you of when a great time might be to offer an extra-low price. This means you’ll either get more home or pay less for the home you want.
While most people are thinking of Football, Turkey and Mistletoe…we can be thinking about snagging the Real Estate bargain of the year!
Send me an email and we can start talking!
mariakalafatich@windermere.com
