512-297- 3442 – www.LetsMoveAustin.com – Austin, TX Real Estate & Investment Specialists.
But Zillow Says…
Most Austin, TX Realtors have encountered this phrase…these 3 little words that
seem so innocuous but which ring in our ears with the same whiny tone of a small
child playing one parent against the other. When we hear it, we know we have
some explaining and educating to share with our clients. But we also know we
can’t fault our clients for bringing up this issue – after all, automatic valuation
models (AVMs) are heavily promoted online on some of the very biggest portals
for home searching. But before you just blindly accept the “zestimate”, let’s take
a careful look at how these figures are calculated.
Automated valuation models (AVMs) plug basic property characteristics, publicly
available data, local market information, and price trends into a computer
algorithm to come up with an estimated value for the property. The more similar
the property is to others around it, the more accurate the AVM is likely to be. In
Austin, TX Realtors know that this method works better for a home in a fairly
recently built subdivision with many similar homes as opposed to a home on
acreage that has had unique additions and improvements over the years. But
even in a relatively similar subdivision, an AVM doesn’t take into account the
condition of the property – meaning that two homes may be valued the same
although one that has new siding and a remodeled kitchen would clearly be worth more to a buyer.
Bottom line – if you are just interested in getting a general idea of what propertyvalues are in a certain town or neighborhood, these AVMs can be a decent place to start.
But if you are considering whether to put your home on the market, or evaluating whether the listing price of a home you are considering making an offer on is fair, you’re going to receive far more accurate information by contacting a Realtor. Only a seasoned Realtor is going to have the expertise and complete sales data to properly price a home in Austin, TX. But don’t take my word for it – read these warnings directly from the most popular websites that offer AVMs.
Theresa Bastian and the team at Let's Move Austin are ready to help you buy, sell,
lease, or invest in real estate throughout Austin and Central Texas. Call 512-297-3442 to get started today.
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