Value Bomb: Online Property Value Estimates
Check below for the transcript of the Online Property Value Estimates video:
Online property value estimates are dangerous whether or you are a buyer or a seller, so beware! In fact, the closer you are to the coastline and the more custom and expensive the homes are the more inaccurate these tend to be. And it’s because it’s a robot using an algorithm to determine value based on some basic factors.
Online estimates don’t take into account the value adjustments for things like view; whether its ocean, canyon, golf course or usable lot space vs. unusable lot space. Differentials in quality of construction, where the property is located specifically within the community, noise levels etc. These are all really important nuances that go into the true value of a home and a robot cannot accurately depict these.
I’ve seen them be off by anywhere from 50%-100% on some of the higher-end homes, which is crazy. There are a lot of great real estate tools online but real estate valuation is not one of them, you’ll want to leave that to an expert.