What’s Your Home Worth?
I’m sure by now you have heard of “Zestimates” and other terminology to explain what your home is worth. So this article is to help you understand the difference of a Comparative Market Analysis (CMA) vs. an Automated Valuation Model (AVM) and other box estimates.
Understanding CMA vs. AVM
Comparative Market Analysis (CMA)
- Includes a professional Realtor® personally viewing your home to account for unique characteristics, condition, updates, layout of home, and more
- Includes that same professional Realtor® researching your area comparing unique characteristics of your home as compared to others: housing trends, supply and demand, conformity, contribution, encroachments, title, externalities, highest and best use, untampered sales records, substitution, change, competition, balance, and anticipation of the future market
- Are ACCURATE 95% of the time if done by an experienced professional Realtor®
Automated Valuation Model (AVM) ex. Zillow Zestimates, Trulia Estimates, Realtor.com Estimates
- A computer values your home in 10 minutes
- Are WRONG only 95% of the time
- AVMs publicly say they know they are off by 8% or more
- On a $150,000 home…that’s off by $12,000!
- Can’t determine actual condition of the home or unique physical characteristics, externalities; everything specific and unique cannot be accounted for…which is everything!
- AVMs account for the number of bed/baths/sq ft, but these don’t always correspond to a higher or lower price; sometimes a bedroom is tiny or your house is sitting in a neighborhood of 4 bed homes and you only have a 3 bed home but due to conformity and supply and demand your home is worth just as much even with less bedrooms
- AVMs are quick, non-professional, cookie cutter, out-of-a-box guesses
- The Value of Real Estate is defined by its unique land, unique improvements, unique privileges, and unique rights
We believe your home is not just a box. Your home is unique real estate. Call us today at 417.334.1892 for your Complimentary Home Value Report! Know exactly where your home is positioned in today’s market so you can decide if it’s a good time to sell or remodel.