Kalamazoo Real Estate – There are lots of computer generated market valuations available for home buyers and sellers in Greater Kalamazoo. They are often called an AVM. That stands for Automated Valuation Model and it is a computer approach that looks at public records to make a determination based on square footage, comparable sales and other elements. It is usually as easy as putting your address in a blank but unfortunately, AVM results may only be accurate about 20% of the time.
A popular AVM, Zestimate®, states “It is considered a starting point at determining a home’s value.” While an AVM contains some of the same information as a comparable market analysis, it lacks two very important things. One is a critical human factor and the other is accurate and up to date information.
There is no doubt that having a pair of experienced professional eyes consider aspects of a house that are not easily “quantified” can make a big difference. A skilled professional REALTOR can tell which properties are truly comparable. A knowledgeable expert can recognize features, floor plans, quality, neighborhoods and several other things that can affect value but are difficult to quantify.
AVMs typically work by gathering publicly available data in a particular radius of the home and comparing it. There are multiple potential problems. 1)Many public records are not updated quickly and many municipalities are behind on updating their websites. 2) The 3rd party sites that create the AVMs do not always have access to up to date market information. Some agents do not allow information about houses for sale to appear on 3rd party websites. The valuations are often created from incomplete and inaccurate data sets. 3) The method of defining the location is very often skewed. A home on that is on the edge of a neighborhood of $400,000 homes but is within 1 mile of homes that are $100,000 will obviously be compared inaccurately.
The THEORY of an AVM is not bad, but the implementation makes the information incredibly questionable. An incorrect assessment of current home value can make your planning and dreaming way off target.
Even if a person isn’t ready to sell their investment, they like to know its value. It is easy to find the price of stocks or mutual funds on any given day but getting the value of a home is more difficult.
Regardless of whether you’re just curious as to how much your home is worth or whether you are ready to buy or sell a Kalamazoo area home, the Veenstra Team is always available to give you a free home market valuation, without obligation. We also have free tools that we are happy to provide to you that will allow you to be alerted every time a house is pended or is sold in your neighborhood. If you are not ready to do this just now, just call us when you are! We can be reached at 269-350-5514. If you meet with us or use our free tools, rest assured, we will not hound you or harass you. We are here to help you reach YOUR goals in a time frame that meets YOUR needs.