Tuesday, July 25, 2006
Virtual Appraisal-Good or Bad
Homeowners can log into a number of online home-value estimator sites on the internet, but how accurate are they?
With the fast appreciation of real estate in the past four years, homeowners are turning to free or nominally priced online tools that spit out a probable home value. That's mainly because many hownowners have come to see their property's price as a kind of stock, giving them equity thay might use to buy a nicer place, get a second mortgage to pay for repairs, or just to feel rich.
A recent test of the process and five estimates-four from online sites, and one from a professional appraiser who inspected the home in person- the value was from anywhere between $291000 to $375000! This was a $84000, or 29% spread!
Other than using a professional appraiser, using a real estate agent to do a comparative market study is the next best accurate method to learn about your homes value. Many of the on-line sites rely on their data base of information, which may not be inclusive of recent sales. In either a fast moving market, as in the past, or a more normal market today, it is important to take into consideration the demand from the buyers. After all, in the final assessment, the buyer sets the selling price.
With the fast appreciation of real estate in the past four years, homeowners are turning to free or nominally priced online tools that spit out a probable home value. That's mainly because many hownowners have come to see their property's price as a kind of stock, giving them equity thay might use to buy a nicer place, get a second mortgage to pay for repairs, or just to feel rich.
A recent test of the process and five estimates-four from online sites, and one from a professional appraiser who inspected the home in person- the value was from anywhere between $291000 to $375000! This was a $84000, or 29% spread!
Other than using a professional appraiser, using a real estate agent to do a comparative market study is the next best accurate method to learn about your homes value. Many of the on-line sites rely on their data base of information, which may not be inclusive of recent sales. In either a fast moving market, as in the past, or a more normal market today, it is important to take into consideration the demand from the buyers. After all, in the final assessment, the buyer sets the selling price.
