Online Home Value Estimates Are NOT Appraisals
This blog was originally published on June 29, 2017. It has since been updated to reflect new data.
Consumers who are seriously in the home buying and home selling market should be mindful of a variety of competing home price estimators. Solely relying on just one price estimate is likely to skew the views of what a particular property will actually transact for. When it comes to online home value estimates, however, the number one caveat for consumers is that these estimates are not a substitute for formal appraisals, comparative market analyses, and the in-depth expertise of real estate professionals. Nonetheless, it is important to know the different sources of Automated Valuation Models or AVMs and home value estimates available online, so that members can help clients and potential clients understand these estimates in their proper context.
Where are these home value estimates coming from? The prevalence of technology can give anyone more access to a broad spectrum of information on the internet. In real estate, access to property details and values is easier due partly to low-cost immense computing power. AVMs spit out a price for a property based on computer algorithms and calculations that take different sets of property data and look for patterns and relationships between property value and the input data. There are websites that will have a home value estimate available by just searching an address, while others may provide an estimate only upon request.
The most popular sources of home value estimates online are those that use AVMs. These estimates have varying levels of accuracies and may not take into account the unique qualities of a home, a neighborhood, and local markets. The main sources of AVM estimates are:
- Realtors Property Resource® (RPR®): RPR® has two home value estimates, their AVM estimate and the Realtors Valuation Model® (RVM®) estimate. The difference between the two is that RVM® uses the same data as the AVM plus Multiple Listing Service (MLS) Data. Both AVM and RVM® show the accuracy level of the estimate by giving estimate ranges and confidence scores. This resource is available for REALTORS® only and allows a significant amount of expert customization, making it a useful tool for members, especially when working with well-researched clients.
- REALTOR.com®: Realtor.com® uses tax assessment records, recent sale prices of comparable properties, and other factors to estimate home values. This estimate is free and publicly available.
- Redfin: Redfin is a web-based real estate brokerage that gives the Redfin estimate for the property, which is based on market, neighborhood, and home-specific data, including MLS data on recently sold homes. Redfin cites that their estimates for properties currently on the market are more accurate than estimates for off-market properties. This estimate is free and publicly available.
- HouseCanary: HouseCanary has two main services: valuations and forecasting. Their estimates use property level data from public records and the MLS. Their accuracy will vary across markets depending on the availability of data. This estimate is available with subscription to their services.
- Homes.com: Homes.com’s estimate mainly uses public records. They test and benchmark the accuracy of their estimates. This estimate is free and publicly available.
- Zillow: Zillow has the Zestimate, which is their home value estimate for properties and is computed using public and user-submitted data. Their estimates have different accuracy levels depending on the data of the property and location. This estimate is free and publicly available.
- Eppraisal.com: Eppraisal.com uses property records, home sales data, and local market data for their estimates. Their accuracy depends on the accuracy and completeness of public data. This estimate is free and publicly available.
- Trulia: The estimate from Trulia is likely to be very similar to Zillow’s zestimate since it is part of the same Zillow Group. Having a separate Trulia price estimate is more a marketing gimmick to give the impression to consumers that there is more competition, though it is just the same company trying to establish a greater market power, hence the ability to extract a higher fee from real estate professionals.
There are also websites that provide home value estimates by request only or estimates using user inputs: ForSaleByOwner.com, GuaranteedSale.com, HomeFacts.com, HomeLight.com, HomeValues.com, SmartAlto.com, ValuemyHouse.com, and ZipRealty.com. Some banking and financial institutions, such as Chase Bank, Bank of America, the Federal Housing Finance Agency, Fifth Third Bank, and PennyMac, also provide estimates to accompany their other financial services. Some real estate agents and brokerages also share their estimators through their websites. Again, it is important to know that these estimates have varying levels of accuracies. These sites may or may not use Automated Valuation Models, but can be another source of property and home value data that anyone can access. Additionally, there are also data companies, such as Attom Data Solutions and CoreLogic, that market propriety AVMs.
As technologies advance and more data becomes available, the number of sites that provide home value estimates may grow. With the knowledge of where to find home value estimates online, it is important to note that these home value estimates are not interchangeable with formal appraisals, comparative market analyses, and they cannot be used as a basis for a loan. Most of these sites, if not all, reiterate the importance of consulting the expertise of real estate professionals to receive an in-depth and in-person analysis of the property and the local market.
Blog courtesy of National Association of Realtors
Your Monthly Maintenance Minute - Easy Home Fixes in the Summer
photo credit https://flexappealreno.com/getting-fit-for-summer/
Easy Home Fixes in the Summer
When it gets warm, it's tempting to ditch any housework for the beach or the golf course. Hard as it may be, consider suppressing that urge for a few weekends, because some fairly easy work can improve the state of your home, give it an appearance makeover, and even save you some money.
Keep Your Cool With a Fan
There's an easy trick to keeping cooler and saving money, and it's as close as your ceiling fan. Switch the ceiling fan's blades so the leading edge is higher as the fan turns, so you can feel the breeze from the fan as it rotates. This simple action will push cool air down, enabling you to set the air-conditioning lower and save money on energy.
Clean Your Dryer Vent
Without some maintenance, your dryer could cause a house fire. The U.S. Fire Administration reports nearly 16,000 dryer fires occur annually, which happen largely because dryers' vents get clogged with lint and dust.
Thankfully, you can avoid any unnecessary dryer-caused danger with a few simple steps. First, you'll need a vent-cleaning brush kit, which can clean your dryer vent tubing more thoroughly than a vacuum cleaner can. Begin by cleaning the dryer's lint trap housing with a smaller brush to remove as much lint and dust as possible. Then disconnect the dryer duct from the dryer and the wall for a thorough cleaning. Also use a brush to clean the vent on the outside of the house to keep both ends clean and free of lint.
A dryer fire is just the sort of thing you'll want to be sure you're covered for. Check out Allstate's property insurance for information on making a smart protection decision.
Keeping Your Property-and Family-Safe
While you're making sure your house is in order, you'll want to ensure your backyard is safe, too. Our Keep Your Backyard Safe and Hazard-Free article can help you make sure your kids can play in the backyard without worries of potential danger.
And our Make Summer Activities Safer article can help your entire family have a busy, fun, and safe summer. And if you have a swimming pool, our Swimming Pool Safety Tips article will help you keep things safe.
Clean Your Gutters
Water and debris can accumulate in your gutters over the fall and winter, which can lead to water damage in your house. And you don't want that. So get a ladder that can reach your gutters, but be sure not to overextend yourself. If the gutter is too high, you might want to call in an expert to do the job.
If you're doing the work yourself, don't lean the ladder against the gutter or near electrical wires. Scoop out the gutter's wet leaves and debris, and wet down caked-on dirt so you can scoop out the mud with a trowel.
Also, use a garden hose to flush the gutters after you've cleaned them. This will get the gutters clean, and it will also let you know if you have leaks. Then use the hose to wash out your downspouts to make sure they're not clogged. But be gentle-downspouts aren't meant to withstand the same water pressure as a house drain.
Some experts recommend covering your gutters with a wire mesh guard to keep debris out. And remember: Never hang onto a gutter for support. It's built to hold water and some leaves, not your weight.
Keep Your Deck Healthy
Your deck provides a great place to hang out in the summer, but it needs a little TLC to stay in good shape. Visually inspect the boards to look for curling, cracked, or rotting wood. If you see a board that's damaged, remove it and replace it with a board that you've cut to fit the same space.
Go underneath your deck to make sure the support structure is in good shape, and keep an eye out for cracked boards and missing screws or nails. If you see signs of insects or unwanted animals, such as spider webs or chewed boards, call a pest-control expert to take care of the problem.
Lastly, if your deck is sealed or stained, some experts say you should refinish it annually. Start by power washing the deck, then letting it thoroughly dry. Remove the finish or seal with a remover/stripper, and let it dry again.
With a sander and medium-grit sandpaper, lightly sand the deck, then remove all of the dust before continuing. Before you apply your finish, do a small test area to make sure you've got the right color. If you do, apply the finish with the wood's grain and don't stop in the middle-that can cause uneven coloring and streaks.
Two things to remember: make sure you're wearing a mask to prevent inhaling dust and fumes, and don't do any of this work if it's going to rain.
Spruce Up Your Paint Job
When your house looks good, it makes your entire property look better. So every summer, rent a power washer and use a mild detergent to clean your house's exterior. With just a little work (that's actually pretty fun), you can get rid of dirt, dust, bird droppings, tree sap, and more. And it provides a good opportunity for you to inspect your house and make sure everything is still in good order.
Article credit from The Elite Group
SOLD!
SOLD! This was another special sale for @thelashleygroup because we were able to help find a home for my sister from another mister, @zuh_reena her hubs @lerrywithan_e and the boys a home in Upland! Know anyone looking to buy or sell a home in LA, Ventura or San Bernardino? @thelashleygroup can help!
Home Renovations That Offer the Best Resale Value
Homeowners can use renovations to improve their quality of living, but not all improvements will provide the same return on investment at sale, according to USA Today.
Often, the best returns will come from bringing a substandard home in line with other homes in the area rather than making further improvements to ones that are already the biggest and best.
Basic projects like attic insulation can recoup 116 percent of the cost and more expensive ones like installing a new HVAC, water heater, or windows could be strong choices as well. Importantly, current homeowners will also enjoy the benefits of lower heating and cooling bills before selling the house.
Refreshing the exterior of a home is one of the best ways to improve the curb appeal for a potential buyer. Inexpensive pressure washing and painting projects can remove the aging effects of dirt and mold and make focal areas like the front door shine.
Landscaping, meanwhile, carries over 100 percent return on its cost and can include planting seasonal flowers as well as trimming shrubs and mulching beds. Adding stone veneer or replacing the garage door will both demand over 90 percent return as well.
Inside the home, painting is one of the best bang-for-your-buck improvements that a home seller can make with an estimated 109 percent return. Choose neutral colors that will go with anything, such as gray, to appeal to a broader group of prospective buyers.
Minor updates to bathrooms can have a 102 percent return and can be as simple as regrouting tile, replacing toilets, updating sinks and fixtures, and recaulking the shower. These projects are often simple enough to do without professionals for an even more significant return.
Article obtained from the Elite Group Home Inspections
SOLD!
JUST SOLD! @thelashleygroup helped our buyers find and guide them through the escrow process. Now they are proud owners of this beautiful home in Buena Park! Do you know anyone looking to buy or sell? The Lashley Group can help!
JUST SOLD! @thelashleygroup helped our buyers find and guide them through the escrow process. Now they are proud owners of this beautiful home in Buena Park! Do you know anyone looking to buy or sell? The Lashley Group can help!
Should you get a second mortgage?
After much consideration, you settled on a mortgage to help buy your home. Now that you're a proud homeowner, you may eventually find yourself in the position to need or want a second mortgage. Here's what you need to know:
Reasons to Get a Second Mortgage
Although this is not a complete list of reasons to take out a second mortgage, here are some of the more common scenarios:
- Eliminating PMI -- You're often charged private mortgage insurance (PMI) when you don't have a 20 percent down payment. A second mortgage can eliminate PMI by covering the rest of the 20 percent.
- Covering big expenses -- A second mortgage is a common method for funding home renovations, college tuition and other large expenditures.
- Paying down debts -- A second mortgage can also help pay down student loans or credit card debt (as long as the interest rate is lower than what you're currently paying).
Types of Loans
Once you start looking into second mortgages, you'll find that they all generally fall into one of two types:
- Home equity loans -- You borrow a lump sum and pay it off monthly over a set period of time. The interest rate on home equity loans is typically fixed.
- Home equity lines of credit --You have access to a set amount of money over a set period, tap into it as needed and only pay back what you borrow. Interest rates are typically adjustable.
Of course, there are pros and cons to each type. So it's a good idea to talk things over with a trusted adviser to make sure your second mortgage makes sense financially.
What Happens During a Home Inspection?
The homebuying process looks something like this: Get preapproved for a mortgage, find your dream home and win the bidding war. But before you can move those boxes in and start enjoying your new property, you have one more major step to take: the home inspection.
A home inspection isn't an appraisal. In fact, an inspection has nothing to do with your home's value -- or how much your lender is willing to finance. It's simply a way to assess a property's safety and long-term viability.
Here's what you should know about home inspections:
- What it is: A home inspection is an independent, third-party evaluation of a home's structure, systems and features. The inspector will look for potential problems or deficiencies on the property.
- Why you need it: A proper inspection ensures the home is safe to live in and a good long-term investment for your household.
- When it happens: Home inspections generally occur after the seller has accepted your bid but before closing day. This gives you the opportunity to withdraw your offer, should there be any major issues with the property.
- What's covered: A home inspection includes the roof, foundation, insulation, appliances, HVAC systems, plumbing, electrical systems and more.
- How you're involved: You are not required to be on-site, but it's in your best interest to be there. The inspector can walk you through any defects he or she finds.
The home inspection is designed to protect you, your family and your investment, so choose your inspector carefully. Make sure the home inspector is experienced and licensed and insured where required. And don't forgo an inspection just to save a little cash. If anything, a home inspection report can give you extra leverage in negotiations.
