Online property valuation sites such as Trulia, Zillow and Chase’s tool are popular places for people to begin sizing up what it may take for them to purchase their next home, or to sell it. But it’s always important to read the fine print, according to Chase:
“DISCLAIMER: THE DATA AND VALUATIONS ARE PROVIDED AS IS WITHOUT WARRANTY OR GUARANTEE OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. THE EXISTENCE OF THE SUBJECT PROPERTY AND THE ACCURACY OF THE VALUATIONS ARE ESTIMATED BASED ON AVAILABLE DATA AND DO NOT CONSTITUTE AN APPRAISAL OF THE SUBJECT PROPERTY AND SHOULD NOT BE RELIED UPON IN LIEU OF UNDERWRITING OR AN APPRAISAL.”
HOME VALUE SITE’S ERRORS CAN COST YOU
According to another online article “Zillow never claims to be 100 percent accurate all the time or even 80 percent accurate most of the time in all areas.
"If all the homes within a six-block radius are very similar to each other, in a suburban subdivision, filled with homes built around the same year and about the same size with identical amenities, a Zillow estimate will be much more accurate, perhaps within 10 percent, because there are not enough specific variances to throw it off.
"In other cases, such as for older neighborhoods with many homes that have been improved in different ways, it won’t be that close at all”.
90% Accuracy Means $10,000 Per 100K
If 10% is close enough for you on the purchase of a home valued even as little as $200,000, then you must not care that you could be overpaying by $20,000! If that is not accurate enough for you then you need to pursue a legitimate valuation.
Fortunately, sellers, buyers and investors can still get a hassle free, yet reliable comparison report for their home value. The best of both worlds so to speak.
Knowledge is power. Having an accurate comps report shows the other party that you are serious and it positions you better during negotiations.
You’ll notice the disclaimer at the very bottom of the Chase Home Value image. We’ve shown the white box with the same disclaimer larger, so you can consider how much you should trust this tool or any other instant real estate home value online.
They’re disclaimer literally says, “it should not be relied upon." It may as well say “for entertainment purposes only.”
Luckily home buyers, investors and sellers all have an accurate online source. It allows you to use their online system to purchase a comp report provided by an agent in your area. Typically reports are delivered within a day or two and reports are about $18.
The value gained from spending a few dollars is tremendous when we consider how far off the other online value estimate could be.
Why Is a Realtor Comps Report (CMA) More Accurate than Zillow or Chase Home Value Estimator?
For one thing, no algorithm could ever take the place of good old fashioned human insight. How could a computer really know the condition of the houses in a neighborhood or all of the feature differences between the houses or the mindset of the buyers and sellers there?
There's nothing better than a great Realtor who really knows a market, it homes, neighborhoods and the people in it.
When a Realtor runs a comps report or CMA (Comparative Market Analysis), they consider and compare things like the age of the home, the style of the home, the condition of the home, the appeal of the neighborhood, amenities, schools and the changing trends in the market as well as simple sq ft, bedrooms, bathrooms, etc.
A Realtor can also run an in-depth analysis of comparable homes, make adjustments for their various differences and give a consumer an accurate home value based on so much more than just public data which is often outdated or just plain wrong.
So, if knowing your home's value is important to you, don't gamble with a shot in the dark from an instant home value estimator like Chase. Get a true and trusted value from the most accurate source, your local Realtor.
Order a Full In-Depth CMA from a Realtor in your area and do it all online today without even picking up the phone.