LOCATION, AMENITIES AND AGE…OH MY!
Last week I went on a listing appointment with a past client. She had done her homework. She had been on a popular website to check her “estimate”, had researched to see what the median price per square foot was for our city, what the average price of homes were running the last several months and reading articles about how there was a shortage of inventory and prices were going up. Based upon this information, she had a price in mind for what she was going to ask for her home because she knew she had an above average home.
I did my research on home sales for the last 6 months in her specific neighborhood, knew the ages of the houses that had sold and what updates and amenities they had and how long they had taken to sell.
Needless to say; our numbers were not the same. In fact, they were about 15% apart! Mine was lower than hers and she was heartbroken. I explained that when she was looking at the median price for the city, that was raw data and included a lot of newer, high-end homes. There was no adjustment for location or age.
I am listing it for a little higher than I suggested due to inventory shortage, but she is now happy with the price and understands the process. See, it doesn’t matter about estimates or zestimates or anything else. It is almost like those sites should have a disclaimer that says any values they propose are for entertainment value only! Without context, those numbers mean nothing! It takes an experienced agent to put those numbers in context and develop a realistic list price for your home.
It boils down to the fact that real estate is local. What is happening nationwide may not be happening in Tyler, Texas real estate! What is happening in Dallas or Austin may not be happening in Tyler, Texas home sales. You have to have someone who knows Tyler, Texas and the surrounding area to provide the context for the information to price your home right!