Zillow Values Mean Squat
Home value: of course you have been checking out Zillow if you have been considering putting your Phoenix area home on the market. I’m sure you may even question why two of your neighbors with seemingly similar homes, floor plans, etc. are priced so differently. To make matters even more confusing, you may have seen the Zillow value of your home shoot up by tens of thousands of dollars or tank when no one in the area has sold to have influenced such a bizarre an sudden change. There is a reason for that.
Don’t shoot the messenger. Yes, you can get a fair idea of at least where you stand in the market, but it misses the mark by sometimes 20-30%. If you are not working with a highly skilled Phoenix Realtor, then you stand losing valuable months sitting on the market with no offers or missing tens of thousands of dollars from an undervalued home. It’s being aware of that balance that separates the young pup real estate agents from the Professional Realtors.
We get it, you are still undecided or even shying away from being “sold” on a move right now, so let’s get you started by researching the competition. Check out our handy Valuation Tool. You’ll likely get a better idea of your homes value based on current sales, not just what Zillow neighbors are selling for. But let us help you. There is no cost for a real home valuation.
Free Phoenix Home Value Analysis
We will prepare a Comparative Market Analysis of comparable homes—“comps”—detailing the original listing price, how much the home actually sold for, and how long it was on the market. The last three months of sales are the most relevant, but we look back at least a year to understand how prices are trending. We also consider the likelihood of potential comps that the appraiser will pull from once you receive an offer. This understanding of unlikely (but real) risks will prepare us for any surprises so we may have a back-up plan at the ready.
The key is to price it correctly to get you moved in your desired time frame and not experience any hassles from a low-ball appraisal. There are tricks-of-the-trade to ensure the appraiser chooses the strongest comps for your asking price, which is why there is great value in working only with an experienced Phoenix Realtor. Not just your cousin’s friend who just got his real estate license. You may be promised a little discount here and there, but trust us, it will not pay for the thousands lost by lack of experience by trusting your largest investment to a newbie or the extra months mortgage payments you pay when you really needed to move last month.
Modern Upgrades Sell Your Home Faster!
There is no accounting for taste, but there is accounting for value. Your taste will never be the same as your buyer’s, but there are many things that no one likes. Buyers hate linoleum floors if they can have tile. They will choose a backsplash over a painted kitchen wall hands-down every time. And they will choose some neutral color on the walls to start white any day. Popcorn ceilings? I can’t even explain that if you need to ask. These could be just a few hundred dollars and a Saturday afternoon to modify, but if your neighbor selling your same floor plan down the street has not done these things and you are priced about the same, you are going to get the offer. It’s that easy.
Then see how your house stacks up against neighboring properties. Drive by homes that have recently sold, and pop into local open houses so you can get a sense of home features in your area. That will help you to see your home’s plusses and minuses through a buyer’s eyes (and pocketbook). How are upgrades looking compared to yours? Specifically Kitchens, bathrooms and any homes with a lack of landscaping. Sometimes new-build home owners purchase thinking they will add the yard later just to squeeze into a home they can’t afford. Years pass and if they didn’t have the ten or twenty thousand dollars then, they certainly don’t now. If you see a home like yours without a yard, you are in better shape. Noticing old synthetic counter-tops but you have new quartz counters and a lovely tile backsplash? Yup, tack on quite a few more thousand to your asking price. We consider these things when some just think about square feet.
Pricing is less of a challenge in hot markets where lots of buyers are competing for scarce inventory, but even then, you want to guard against overreaching. It’s better to price in line with other properties that have just sold (and maybe attract multiple bids) than to aim too high and sit around paying mortgage on a home that’s no longer appropriate for you. In markets where prices are falling, underpricing by 3%-5% can get ahead of the curve. We can’t stress it enough, give us a call to see where you stand before making any decisions. We’re here to help.