Your home has four different values…
…which one is will be the highest and most accurate?
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Home values have gone up about 8% in the last six months.
Since March your home has gone up in value as much as 8%.
With that comes a lot of confusion and the most common question we receive today is…
…What is my home worth now?
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Not that they are wanting to sell or anything, but, what is the correct information?
There’s four ways, four different valuations that our people are using to arrive at a home value. I’m going to tell you the pros and cons oneachy one of them.
Number one, your tax assessed value.
That’s valuation, and that’s done by the County Assessor for tax purposes. This is the leas accurate current market value. I’m asked all the time, “Nick, are homes selling for more or less than the assessed value?”
The truth is it’s hard to say because they can use comparable sales that are two years old!
In fact, they don’t even have to go in your house or even drive by it.
The second value type I see people use is a computerized valuation.
The computerized valuation uses an algorithm a set of values to arrive at a value. A computer engineer created it that may or may not have ever purchased home. These are sites like a Zillow Zestimate. Zillow’s Zestimate’s going to be using the same inaccurate assessed value. They will include recent sales and activity. Most computer valuations will deviate up to 18%.
Years ago I sold a waterfront home on Lake Chelan, for a million dollars…
…. The Zestimate was 380k, because it didn’t realize it was waterfront.
That’s a good example of how one variable being off or missing can have a massive negative impact on your value.
These variables matter like…
…the location to power lines or the location to a desirable trail or your backyard privacy or your view.
The computer has no idea of what the view is like.
There’s no variable for view in the algorithm. Not to mention the computer has never been inside your house.
Number three, Appraisal
This will be light years more accurate than those first two.
Done by an actual licensed appraiser.
An appraiser will do an appraisal on your property for a sale. They’re going to go verify that sales price is high or low. The appraiser has guidelines they have to use. They will use recent sales of like properties. Actual comparable sales that are like your property with adjustments in the last six months.
This gives us a more accurate picture of what people are willing to pay for homes like yours. The fourth and most accurate valuation is a broker opinion of value.
One that comes from an expert like myself. I
‘m going to use the exact same approach as the appraiser. The difference is I’m going to factor in current market conditions and buyer activity.
I actually know what buyers are doing today. I know what they’re willing to pay for in today’s market for homes like yours.
An appraiser looking in the past, I’m going to take that value and position it for today and into the future. If that’s something you want, send us a private message.
We love doing them. Even with no obligation to list or sell whatsoever.
You owe it to yourself…
…to have the most accurate information when it comes to the biggest investment you own.
You will want to know your home’s worth.
Go to www.nickmcleanrealestate.com to request a free valuation.
Nick McLean – 509-255-8070 – Nick@NickMcLean.com – www.nickmcleanrealestate.com