312 Estate Experts versus relying on Agents regurgitating search engine values
Here are the multi-unit comps an appraiser may use. The challenge an appraiser will have is they are limited to using sales within the last 6 months and with exception the last year. To maximize value, you will probably want to hedge to the single family have values.
For both buyers and sellers, we always find it very interesting the initial value bias one has on various properties. Over the years we know it primarily comes from large search engines who offer their estimates of the property. Agents either work for such companies or pay to gain leads. Many people we initially meet take this information as fact.
Over the years we have some interesting conversations. The luxury market traditionally a buyer or seller will use an expert realtor. However, our office will never forget when a buyer offered $1,000,000 less on a $2,800,000 home because of a search engine estimate. Shortly after the home went under contract with another buyer within the $2.8 price range. The buyer with the $1.8 offer marched into our office the next day mad as can be because our Seller would not counter his initial ridiculous offer.
In 2020, we did a listing appointment where we were curious as to the value the seller had placed on their home. We did our valuation which was over a 12% difference. We listed and sold the home in our price range.
We found interesting that one search engine changed its pre-listed valuation after the home is listed on the mls.
Here are 4 homes 312 Estates Sold compared with popular search engine valuations:
We have found our expertise valuation benefits both buyers and sellers and the above table proves this out. Clearly, the four sellers in the above table in total nearly $500,000. However, the table also show the post mls valuation can be high. We have experienced this multiple times with buyers where we feel that the home is not worth the valuation price.
In some cases, the valuation can be quite high compared to our value. If by chance the search engine valuation considers the realtors listing price, and the agent combined missed on the price, a buyer may be led astray.
We hope this information has been helpful in showing you the benefits of using an expert. Neighborhood expertise, analyzing each situation, 2nd to none marketing, persistence, and craftiness to achieve the best deal for our selling and buying customers will not ever be surpassed by an algorithm. We look forward to discussing your needs.
Update! We have had several questions regarding the above table and demanding proof. Here you go:
1346 W Addison
Another interesting side note is Redfin’s historical valuation of the property has changed. If it were not that we saved the historical pre-mls valuation, if you look on the property website today, you would not have seen that Redfin price prior to the 10/5/2020 sale had the home priced as low as $870,809.