Why You Need A Realtor With Pricing On A Home

In the age of digital technology we all can scour through the internet to find a value on a house. There are numerous sites that offer advice on what a home value should be. So, why do I need a Realtor to tell me what the home is worth or not worth? Well despite all the third party sites that give estimates to the value of a home no two homes are identical. These sites take into account the square footage of a home and the location of the home and based on that data they come up with an estimate as to the value of the house. But what if the neighborhood has homes that are not updated? What about bank owned properties? What about the improvements you made or the neighbor made to their home? How do those factor into the estimates we see online all the time? The answer is quite frankly they do not. I had a buyer looking at a house this past week. They had done some research online about the neighborhood and the schools. (By the way I highly recommend that to all home buyers and sellers). They were pleased with the information they found about the neighborhood and the schools for their children. In their research they also came across a few estimates as to what the house was worth. In this case the house was priced about 15% above the estimates they were shown online.... They wanted to make an offer that was more reflective of getting the house for the estimate versus based on what the asking price was. Now, I ran the comparable for the neighborhood and factored in other factors that the buyer did not take into account. Like the condition of the house. This particular house was completely remodeled in the past few years and the quality of work the sellers had done was exceptional. They had added a lot of value to the house with the upgrades and remodeling they have done to the house. The price was still a little high in my opinion but not 15% to high. When I add in the addition and the new flooring, the additional second full bathroom, remodeled kitchen and the professionally landscaping done to the house the value went up.....But how does these independent sites know that a 1970's homes was updated to be like a new home? The answer is they do not. I never give anyone a true value of a home until I have been in the house. I can give them a range based on the pictures and the description but until I see the house I am not comfortable assessing the value of a house. Because like this one the condition inside could make an impact on the value. But what if the house was reverse. Let's say the whole neighborhood was made up of remodeled homes that sold in the past year and this one was a 1970's home that had no updates...Is it worth the same amount of money or less? The amount of repairs a home needs factors into he cost of the home. An average condition house may be worth $200,000. But a house in need of $20,000 in repairs will be worth only $180,000 or more likely less because of the work it needs. The same is for the location of the house in relation to the neighborhood. Is it on the main street coming into the subdivision? Or is it located in the back part of the subdivision? People will pay less for a house that is located right in the front of a subdivision because of the noise and traffic it gets. What does it back up to? If the house backs up to woods or a park the value is greater than one where you can see your neighbor cooking in the kitchen from your back yard. What kind of yard does it have? Is it flat, level and cleared or hilly and wooded? Yards are becoming a large component with buyers today because of either the children or pets. Is it on a cul de sac lot or on a major intersection? Studies show people pay more for a cul de sac lot than they do for one not on the cul de sac with children. Am I near amenities in the community or do I have to drive to them? I know personally I like to know that my teenage children can walk to the pool or playground without me and paid more for that convience I can go on but you can see where I am coming from. An estimate is only that. An estimate. Without seeing and touching and walking the house and lot it is very difficult to put a value on a house. So difficult that I will not commit to a price without first seeing the house to evaluate all of these things and more..... That is why even though a Realtor had a price on the house that may or may not be in line with the estimates out there....it does not necessarily mean the price is wrong. There are a lot of other factors that play into the pricing of a house that the estimates cannot take into account and is why you need a Realtor when it comes to figuring out the prices of homes and whether it is a good deal or not. Dave diCecco Realtor/Broker Helen Adams Realty Cell: 704-519-7895 ddicecco@helenadamsrealty.com www.davedicecco.com