Have you ever wondered how much your Utah home is worth? If you have, you probably used the site Zillow to search for the value of your home. The thing is, sites like Zillow are often wrong. They have been known to price homes super high or super low.
Zillow uses an automated valuation model (AVM) to create it’s Zestimates. The AVM uses basic property characteristics, publicly available data, price trends and local market information to determine the value of homes. The AVM analyzes past comparable home sales and decides how much it thinks your home is worth.
So why are Zillow’s Utah estimates often inaccurate? Utah is a nondisclosure state, which means that only the listing price, not how much the home actually sold for, is available. Zillow doesn’t factor in property condition, capital improvements or other variables that are vital to determining a property’s value either. Zillow hasn’t seen inside the home. The AVM doesn’t know if the kitchen was recently renovated or if a pool was added in the back yard. It also doesn’t know about the mold in the basement or the hole in the roof. Do you see how this could be an issue?
Another problem with Zillow’s AVM is that it doesn’t distinguish between types of sales. It doesn’t recognize or account for short sales or foreclosures. These homes often sell for less than they are actually worth. The AVM uses basic property characteristics such as square footage and number of bedrooms and bathrooms to find comparables, these types of sales can cause Zillow to value homes below their actual worth in Utah.
Our website, www.redsign.com can give you a list of comparables and an estimate of your home’s value, the same product that Zillow offers. What sets us apart is that we are experts in pricing homes in Utah. We look at the past, present and future when pricing homes—something a computer simply can’t do. If you are looking to buy or sell a home in Utah, give us a call today at 877-787-2008.