So What is Your Utah Home Value?
Today most people tend to use Zillow to get an idea of their home's value. While this tool can be useful there are certain drawbacks that you need to be aware of before relying on it to price your home when selling. I recently showed a home in Salt Lake City Utah that was listed for sale-by-owner and the list price was at the Zillow value. In my opinion Zillow undervalued this home by about 5% to 10%. Why did this occur? Remember Zillow tends to rise the value of the undesirable homes in the neighborhood while lowering the value of the neighborhoods most desirable homes. How does this happen. It assumes all homes in an area are equal just some are larger and some are newer. It does not distingish between the "Toyota Tercel home", or the "Toyota Camry home" or the "Lexus home". To automated valuations all homes are "Toyota" so to speak.
Automated Home Valuations are not the Most Reliable
When selling my last home Zillow undervalued the home by more than $150,000 of what I actually sold it for. My home was a custom home on 2 acres that was 100% landscaped in an area near tract construction homes that Zillow or any computer generated value would have an impossible time giving a reliable valuation. On the other side of the coin I just listed a home that Zillow valued at $422,000 where the real value is closer to $380,000. It is a tract home with several same model match homes that have sold in area with none selling over $385,000. This home is located near some custom homes with similar square footage that are superior but the automated valuation cannot distinguish the difference so it values the home too high. In Utah it is very common for homes to very significantly in value within the same neighborhood.
So why Does a Reliable Home Valuation Matter?
Well it doesn't unless you are wanting to sell. If you underprice your home when selling there is a good chance you are leaving money on the table that could be in your pocket. If you overprice your home you may miss your chance to make a good impression on the market and your listing may get aged and market stale. Everybody seems to be the most interested in the newest listings. Understanding your home's value "sweet spot" is as important as marketing your home.
Automated valuations should only be used to give you an idea of value and never relied upon for establishing a list price when selling. To determine your home's value you really need to seek the opinion of an experienced Realtor. That is where I come in. I am a Realtor with years of experience that can help you accurately determine your home best list price and probable sales price. You can contact me by phone at 801-471-9443, text, email: rozierrealtygroup@gmail.com or on my website at www.UtahRealtyGroup.com. My name is Scott Rozier and I want to be your Realtor.