The beginning of any real estate move starts with understanding your property’s actual value. There are many clues and indicators that help property owners understand where their property’s value falls in the current market. From the quick-burn numbers of Zestimates to Comparative Market Analysis from a broker, there can be quite a range of numbers to confuse the matter.
Valuations generated by platforms like Realtor.com and Zillow can be helpful but may not be up to date. Input your property’s address on either site, and you may find the photos associated with the valuation are not current. That could also be an indicator that the valuation is not up to date either.
Both sites do allow you to take ownership of your properties and update the profile with new pictures and details about improvements. While this can help hone the valuation, there are still other factors that are impossible to keep current with the formulas and algorithms utilized by these tools.
In Idaho’s fast-paced real estate market, where properties last only hours before being sold and property values change in real time. The factors influencing property values are difficult to account for in a formula. Inventory is one variable that may not be accurately factored into algorithms used by online platforms. With the low inventory trend in Idaho’s Treasure Valley, there is no sustainable way to meet the current demand of buyers.
It is quite common for a home fresh on the market to receive multiple offers. With this type of bidding war, many properties are receiving offers well above asking price. It is the basic principle of supply and demand. Low inventory, coupled with demand created by the continual growth of Southern Idaho, has created a “perfect storm” home value.
Algorithms produce data that can reflect human behavior. However, human behavior can change quickly. Emotions influence consumer decisions in various industries, and real estate is definitely one of them. When looking at a long term, legacy purchase like a family home, it is easy to see how buyers fall in love with a property and are willing to make sacrifices to ensure that is the place they get to call home.
While it is exciting and exhilarating to keep pace in this market, acquiring properties requires the expertise and tools of real estate professionals who have their finger on pulse of daily trends. A comparative market analysis is a real time valuation of homes and properties that draws on tax data, recent sales, sales history, micro trends, and consumer trends.
While data is a big factor, a lot can change over a matter of days to influence home values. Planned improvements in the neighborhood, home renovations on less attractive homes on the street, and current nearby selling prices are factored into a professional CMA. Automated valuations are a good place to start but cannot replace the expertise of a trusted real estate agent.
360 Real Estate Service works with buyers and sellers throughout their real estate journey. It is our pleasure to provide a complimentary comparative market analysis and discuss your real estate objectives. Let’s get started!