Why Don’t Online Home Valuation Tools Work?

Why are the estimates on Zillow and Trulia inaccurate? How do you know what your home is actually worth in the current market? We’ll go over everything today.

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Recently, we asked you to send in your questions, and today I would like to answer one that we got from Diane. Diane asks, “I would like to know why the estimates on Zillow and Trulia are so low. How can you get a real sense of what your house is currently worth?”

Zillow, Trulia, and other online home valuation tools use an algorithm to estimate your home’s value. The algorithm relies on other homes that have sold in your area, the age of your house, and the size of your house. The computer then takes all of that information and spits out a value.

Your local real estate agent or appraiser can help you figure out what your home is worth.

Keep in mind that because those values are computer-generated, there are many variables that those estimates do not take into account. Location is an important factor, too. For instance, a house on a busy street might not be worth as much as a house on a quiet cul de sac. A lot of those nuances are things that your local agent will be able to take into account.

Even if you look on Zillow’s website, you will see that they say the Zestimate is accurate within 7% of your home’s value about 50% of the time. That means that the other half of the time, the Zestimate is off by more than 7%. If your home is worth $200,000, that means Zillow is probably off by at least $14,000.

So, how do you know what your home is currently worth? As real estate agents, we can compare your home to similar properties in your neighborhood and give you a rough idea of your home’s value. We will look at the condition of your home, the upgrades and updates you have made, and figure out what your home is worth.

Another way to find your home’s value is to order an appraisal, which costs about $400. The appraiser will do a very scientific breakdown of the homes near yours that are similar in age and size. They will find the property most similar to yours and compare the two. For instance, if you have an extra bathroom or bigger lot, your value will be a little higher. On the flip side, if the other house is in better condition than yours, your value will be a little lower.

The reality is that your house is worth a combination of what you are willing to sell it for and what a buyer is willing to pay for it in the current market. If you have any questions about what your home is worth, just give us a call or send us an email. We would be happy to help you!

Is Curb Appeal Important When Selling?

Looking to buy or sell a home in Athens, Georgia? Click here to perform a full home search, or if you're thinking of selling your home,click here for a FREE Home Price  Evaluation so you know what buyers will pay for your home in today's market. You may also call us at (706) 621-6085 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today we are talking all about curb appeal. A lot of people ask us if curb appeal is very important when selling. You better believe it is. The moment a buyer pulls into your driveway, they are going to start immediately making judgements and assessments about your house. If your home looks bad from the street, you’ve got to compensate those negative emotions on the inside of your home, which is tough to do. You are better off making sure the outside of your home looks just as good as the inside, and let the buyer see the home as a full picture. 

If a buyer doesn’t have a good feeling about your house from the start, they are less likely to make an offer on it, and will probably move on to another. Today I want to give you just a few small tips that you can use to make a big impact when selling. These are very simple things to do, but you’d be amazed at how many sellers don’t pay attention. Here are our top 5 tips:

1. Trim the shrubbery - maybe put some mulch out as well.
2. Cut the grass.
3. Add colorful flowers to your landscaping.
4. Clean the roof of the home.
5. Pressure wash the house, specifically the front porch. You want the first thing buyers see when walking in to be shimmering and shining. 

Some of these are very simple, but it’s the small things that make the biggest impact when selling. Any home will sell in any condition, but to sell for top dollar, you’ve got to be in top condition. If you have any questions for us, shoot us over an email or give us a call. We would love to hear from you!

What Are Appraisals and How Can They Affect Real Estate Transactions?

Looking to buy or sell a home in Athens, Georgia? Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price  Evaluation so you know what buyers will pay for your home in today's market. You may also call us at (706) 621-6085 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today, we tackle a few very important topics. Many people are unaware of what an appraisal is and why it's necessary during a real estate transaction.

When an appraisal is ordered by the bank during the selling process, a licensed appraiser will perform a report to determine whether the sale price on the contract is a fair market price. Usually, this is just a formality, and the sale price comes in close to what the home is appraised for. However, sometimes issues arise.

While the TRUE market value is what a seller is willing to accept and what a buyer is willing to pay for a home, the bank still wants to make sure they are protected from lending too much. The appraiser comes in to offer a third-party opinion of the contract price and determines whether the value can be justified.

Occasionally, we see the appraised value come in less than the purchase price. Why do we see that? Well, in a rising market where prices are rising and homes are going under contract for more money, appraisers are bound to use past sales history; if home values are rising quickly, by the time an appraiser gets their hands on past sales history, the value of the home in question has already risen substantially. This results in an under-appraised home, and since the bank will only loan money based on that appraised price, this creates a problem for the borrower who needs the full amount to complete the sale.

If this happens, there are a few different ways this could play out. One thing that can happen is the buyer can dispute the appraisal. If it's found that poor comparables were used to find the value, sometimes the appraisal will be adjusted to make it come in at the value it should. In other circumstances, we've seen the borrower leave their lender and go to a different one and start the process over. Often, the second appraiser will get the value to come in where it needs to be.

The appraisal is an opinion of value, and sometimes two different appraisers find different values. Typically, the buyer doesn't have to leave their lender, as appraisers will sometimes adjust their report if it doesn't come in where it needs to be. Also, the seller will sometimes agree to decrease the price of the home to the appraised value. Another option is for the buyer to agree to pay cash for the difference between the appraised value and the seller's price. Of course, meeting in the middle is yet another way to avoid having the deal fall apart.

Most of the time, we see homes appraise, but it's better to know your options should a low appraisal come in. If you have questions about this topic, or if you need real estate assistance of any kind, don't hesitate to reach out to us. We're proud to be your Athens real estate resource!

Is the Athens Real Estate Market Healthy?

Looking to buy or sell a home in Athens, Georgia? Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price  Evaluation so you know what buyers will pay for your home in today's market. You may also call us at (706) 621-6085 for a FREE home buying or selling consultation to answer any of your real estate questions.

Hey there everyone, welcome back to my blog. Today I want to start off by apologizing to you all. I made a commitment a few years back to produce great, educational videos and send them out to you twice a month. I have not given up my goal, but I have failed you lately. I haven't produced anything over the last month, and the only excuse I have is that we have been busy.

Today, I am getting back on the horse, and I am back with some very useful info for you about the Athens real estate market. So far, 2015 has been a much busier year in the market than 2014 was. If you look at the numbers for Athens and Clark Counties, sales are way up. Last year, through June, we had 497 residential sales. This year, through June, that number was 612. In addition to this, the average sales price in Athens has risen from $162,000 to $177,000 in just the last year!

In Oconee County, the number of sales has been pretty consistent with what we saw last year, but prices are rising significantly. The average sale price has moved up from $296,000 to $315,000 in the last year. In Athens County as a whole, home prices are up by about 10%.

If you are thinking of buying or selling in the near future, now is a great time. If you have any questions for us, or need assistance buying or selling, we would love to help. Give us a call or send us an email, and we will talk to you soon!