by Tania Harmon
What’s my home worth?
A quick Google search of that questions will get you dozens of sites offering a home valuation tool that makes valuing your home, well, easy as pie. Online tools like these have become most sellers (and buyers) first step in the selling (and buying) process. But how accurate are they?
By nature, these valuation tools have their limitations. Each market has unique characteristics that influence home values. Maui is no exception. Each online valuation tool relies on different sources for their information. One of the most popular, Zillow, does not have access to the Maui MLS and therefore relies on user reporting for sold data. Other sites rely on limited shared data and public records, but this can also lead to gaps. If you spend just a little time on the site you may find discrepancies in key data points, such as bathroom count and square footage, which can greatly skew values. And they will acknowledge these limitations – you just have to dig a little.
Scroll to the bottom of the website page and click on one of the ‘fine print’ options – the site disclosure and Q&A sections – and you’ll discover quickly the acknowledged error rate alone should cause you to take pause. Zillow discloses it’s “Zestimate” offers a National median error rate of 4.3%. That may not sound like much, but in Maui County, where the median single family home price is currently $700,000, that equals a difference of more than $30,000. Dig even deeper and you’ll discover that for Maui County the “Zestimate” is within 20% of the actual sales price less than 95% of the time and within 5% of the actual sales price less than 67% of the time.
While automated home valuation tools can be useful as a starting point to your home buying or selling process, nothing compares to the knowledge and expertise offered by a licensed Realtor. An automated tool can’t possibly provide you with the expertise that comes from a real estate professional’s knowledge of the neighborhood, a home’s unique characteristics and local market buying trends. Kihei alone has 15 subdivisions and 84 condo developments. Each one has unique characteristics and market trends that effect each properties value.
If you’re interested in finding out what your home might be worth, give us a call. We are happy to come meet with you and offer a free Comparative Market Analysis to give you a more accurate idea of your home’s value in today’s market.