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- Home evaluation tools can be inaccurate: Although there are several online tools that can give an estimate of your home’s value, these tools are often incorrect by about 5-20%. These inaccuracies mean that you are losing out on both money and buyers if you strictly go by these tools. Realtors may use these tools to begin the home pricing process, but there is a lot more work that goes into the price than simply using online tools. Realtors perform a lot of ground work that the average homeowner may not be able to do.
- There are many factors that go into the price of a home: Market data is just one component of property value that Realtors will use when coming up with a list price; the rest of the factors are very property specific. The age of the roof, home upgrades, neighborhood info, etc. all come into play when deciding on a listing price. The property specific data is not something that these online tools have access to which can make these home values very inaccurate.
- A Realtor’s experience plays a big role: A Realtor does a comparative market analysis or “CMA” for every listing. CMAs involve going to a property and thoroughly inspecting both the home and the neighborhood to determine the best price. After completing a CMA, the Realtor will be able to effectively articulate the home’s list price to potential buyers and their agents. A Realtor will use their experience and expertise to come to a well thought out price.