Buyers and sellers alike want to know the true value of their home. Sellers want to be able to get the highest price possible and buyers don’t want to overpay. Having an accurate market valuation is important.
Many people turn to Zillow and their Zestimate, which is a computer algorithm that does a statistical comparison with similar properties. However, there are a lot of ways in which this automated estimation can be inaccurate.
Zillow properties tend to be off anywhere from 5% to 15% of the home’s true value. Zillow isn’t able to determine the property’s location, which can have a huge positive or negative impact depending on what the location is. They don’t take any upgrades into account either.
“Don’t put your faith in Zillow or the county assessor.”
Assessed values are pretty similar. While some states reassess home values based upon the sale of a home, Kauai’s assessed values are based on the county’s formula alone. They reserve the right to be off by 20% in either direction. If buyers just look at assessed values, it could cause them to draw unfair conclusions about a home. Especially in the luxury home market, where we’ve seen a home that was assessed at $4.8 million sell for $16 million. The county assessor is about as limited with their valuation as Zillow is.
The best way to find what the true value of your property is by calling professionals like us. We understand the market, so we understand home values. We will be able to get you a much more accurate valuation than you’ll ever get online.
If you have any questions for us or want to know what your home is really worth, give us a call or send us an email. We look forward to hearing from you soon.
