I need to sell my house fast. But I can’t list it with a realtor. I need to know “what is my house worth?”
Your first instinct is to go to Zillow or Redfin and type in the address. Just like that a value appears like magic on your computer screen. But is it really accurate? You need to ask yourself some questions. Does my house need major repairs? Is my kitchen up to 2023 standards? Should I sell my house for cash without a realtor? Does Zillow know that I need a new roof? Does Redfin take into consideration that I want to sell a rental property and the tenants have caused damage? There are so many questions that need to be taken into consideration before you can determine the value of your house.
Getting the True Value for Your House is not an Exact Science
Zillow and Redfin both use automated valuation models (AVMs) to estimate the value of homes. AVMs use algorithms to analyze publicly available data, such as recent sales of similar homes in the area, to estimate the value of a property.
Zillow’s Zestimate is based on a proprietary algorithm that considers millions of data points, including public records, user-submitted data, and multiple listing service (MLS) data. The algorithm takes into account factors such as the home’s size, location, number of bedrooms and bathrooms, as well as data on local schools, crime, and amenities. Zillow also uses machine learning to improve the accuracy of its Zestimate over time. However, Zillow has acknowledged that the Zestimate is not always accurate, and that it should be used as a starting point for research rather than a definitive value.
Redfin’s home value estimates are also generated using an algorithm that considers publicly available data, including MLS data and public records. The algorithm takes into account factors such as the home’s size, location, number of bedrooms and bathrooms, as well as data on local schools, crime, and amenities. Redfin also uses machine learning to improve the accuracy of its estimates over time. However, like Zillow, Redfin also acknowledges that their estimate may not always be accurate and should be used as a starting point for research rather than a definitive value.
Both Zillow and Redfin also allow users to submit information about a specific property, such as updates or renovations, which can be used to improve the accuracy of the estimate. Additionally, both companies have a disclaimer on their website that the estimates provided might not always be accurate and should be used as a starting point for research rather than a definitive value.
It’s important to keep in mind that AVMs, such as Zillow’s Zestimate and Redfin’s home value estimates, are based on publicly available data and may not take into account certain factors that can affect a home’s value, such as the condition of the property, upgrades, or unique features. For this reason, it’s always recommended to seek out a professional evaluation for a more accurate estimate of a home’s value.
So How Much Is My House Worth?
That’s the easy part. Zillow and Redfin are great for giving you a baseline estimate, but remember since they use computer models that rely on home sales they don’t take into consideration what repairs (if any) need to be done to your home. What you need is a comprehensive breakdown of your home’s value based on all of the factors involved. Without that, you will not know the true value.
Once you understand how an offer is made on your house, you can seek out an experienced homebuyer, book an appointment and be well on your way to getting the best offer for your house.