Why Home Sellers Need An Agent To Price Their Home
Why Home Sellers Need An Agent To Price Their Home
A quick internet search will reveal dozens of Automated
Valuation Modeling (AVM) sites that promise to tell you how much your home
is worth. These AVMs use statistical modeling techniques that "value"
your home by comparing it with the price of similar-sized homes that have
recently sold in your area. Using proprietary software, AVMs crunch
publicly-available numbers from the multiple listings service and combine this
with regional pricing trends to set a sale price for your home. Enter an
address, and up pops a value. So why does anyone need a real estate agent?
Because AVMs Get It Wrong
Most AVMs admit that valuations may be out by as much as five percent. In fact,
a recent study by Standard and Poor found inaccuracies of up to 20 percent,
meaning that anyone relying on an AVM valuation could be seriously under- or
overpricing their home. Old data accounts for some of the error. Because AVMs
rely on public sales data, there can be a two or three month time lag between a
sale closing and the data hitting the AVM. In a fast moving market, the time
delay dangerously distorts the price.
What's more, AVMs do not take into account the condition of your
property, nor the condition of the comparable properties that make up its data
stock. The fact is, no two homes are alike. Statistical modeling does not
account for your home's inlaid marble floors or state-of-the-art kitchen, just
as it doesn't account for half the homes on a block standing empty and in
foreclosure. Software cannot see these things, so assumes that every home is in
average condition. This does not reflect reality, so the valuation comes out
A great deal of information determines the valuation range for your home.
Market data is one piece of information. Others are property-specific, such as
whether your basement is damp or you've had new hardwood floors installed.
Others still relate to the neighborhood and its characteristics, such as
transport links, local shopping and recreation facilities and zoning
restrictions. AVMs simply don't have access to this information. The Alternative - A Comparative Market Analysis
Real estate agents are trained to prepare a comparative market analysis, or
CMA, for every home listed for sale. This involves a physical inspection of the
subject property and local knowledge, which combine to give a valuation range.
Note the word "range:" CMAs do not, as some people expect, ascribe a
single sales price to a property. Rather, they specify the range of prices that
the property could achieve on sale, depending on how quickly the seller wants
to achieve that sale and other factors.
Preparing a CMA is an art, not a science. There's no one-size-fits
all. Quality CMAs require thorough knowledge of the dynamics of property
sales in a specific neighborhood. The agent makes judgments based on his / her
understanding of the local market and the dozens of peculiarities that affect
price, such as lot size, lot orientation, tax assessed value, features of the
lot, including its terrain, access and privacy, improvements and additions,
condition, quality and age. For example, your agent may know that an
overextended home, the appearance of which is out of step with the
neighborhood, will likely sell at a discount: an AVM will count only its square
footage, and come up with a valuation that's too high.
Every home is unique and must be valued accordingly. Get it wrong,
and you risk deterring buyers, or not getting the money you deserve on a sale.
We understand that for many people, buying or selling a home is probably the largest investment decision that they will make in their lifetime. Halo Group Realty LLC thus became active in selling Real Estate in 2008 and was setup to make this process a simple and painless transaction. Your dedicated agent will guide you every step of the way to make purchasing or selling your home enjoyable and exciting… as it should be!
Today, Halo Group Realty LLC is at the cutting edge of technology in offering assistance to those in need of real estate services, and we have revolutionized the method of delivering education to consumers. Halo is established as the place for consumers to get the knowledge and assistance they deserve in the process of facilitating the Real Estate transaction, positioning you in the best possible situation to get the best price when you either to buy or sell. With leadership, innovation and forward thinking, Halo Group Realty, LLC is poised to make a huge impression in the real estate market while providing clients the keys to home ownership.
Our goal is to help make your dream a reality and take away all of the stress that goes along with purchasing or selling your home. Whether you are purchasing new construction, an existing home, or just an open space for future enjoyment, representation by a Halo agent is a valuable tool in making your dream become a reality.
Plenty of home sellers consider their places to be coveted properties
"My 11th move as an adult, brought me the best real estate agent Kerry Downs. This was also a different kind of move, as I am recently widowed, my husband (or his company) had always handled every detail of our moves, so I needed someone who would not only be "business-wise" but also "heart-wise"! Kerry could not have been more knowledgeable or considerate. My "yet another" question of the day" was always answered with caring, kindness and promptness. He is a gem!!!