What Is The Value Of My Fort Lauderdale House?
If you’ve been trying to sell your home you undoubtedly know that the very first step is finding out what the true value of your house. But who do you trust to give you an accurate valuation of your home and what is their data based on/
When you are entering the sales process, know what your home will sell for is vitally important. It could mean the difference between a home sitting on the market for months or selling in a week.
Too many people rely on inaccurate data in determining the value of their house and end up chasing the market down if they price the house too high. Most people don’t realize that over-pricing a home can cost you as much or more than underpricing it.
The Fallacy of a Comparative Market Analysis
Whatever you do, NEVER rely on a comparative market analysis of CMA provided by a Realtor. A CMA is completely useless. A comparative market analysis is merely a tool that Realtors use to present to you to get you to list your home with them.
It is easily manipulated. Don’t believe me? Call ANY bank…ANY mortgage broker…ANY lender, and ask them if they will accept a comparative market analysis from a Realtor as justification in providing a buyer with a mortgage.
You have to think. If no one will accept a CMA as real data that they will stand behind in making a mortgage loan on a property, why would you use it in setting the list price of your home?
A comparative market analysis is not a comparable aggregation of value. It’s a script written by a Realtor to get you to put your name on their listing agreement. That’s the limit of its usefulness.
Know What Your Home Is Worth Before Selling
Here in South Florida, a two houses that sit just a block away from each other can completely have different valuations. A house that sits across the street from yours could be hundreds of thousands of dollars in value differentiation.
That’s the problem with using the online valuation tools. They don’t know you’re specific neighborhood. As you know, if you live in South Florida, your house could be on a dry lot and it could sit just across the street from a deep water, ocean access home.
That house across the street could be worth $200,000 more than yours and it’s directly across the street. We have a unique marketplace here in Fort Lauderdale and because of that, you really have to have very good comparable data.
You Have To Understand What A Comparable Is
Simply stated, a direct comparable is the foundation of appraising the true value of a house.
“Appraisers throw around the word “comparable” all the time but how often have you had one sit down with you and explain to you what a true comparable is? Comparables are more than just sales they are the building blocks of an appraisal and what an appraiser uses and depends on to come up with value.”
Here’s what a true comparable would look like in reference to your property:
- +/- 15% square foot differentiation same bed room and bathroom configuration
- CLOSED sales within the last 90 days. ( I can’t tell you how important this is. What homes are listed for means absolutely nothing!)
- similar properties within the same subdivision (in some areas of the country it may be hard to find properties in the same subdivision. we usually don’t have that problem here in South Florida but if we have to broaden our search and make adjustments, then we do so accordingly but we must stat in the immediate subdivision)
- Similar amenities (pool, waterfront, ocean access, dock, garage/ 2 car garage etc.)
- Similar improvements (updated kitchens and baths vs. original, barrel/Spanish tile roof vs. shingle etc)
- Lot size, zoning, number of foreclosures in the area, school system rating, child predators in the area (latent material defects) etc.
- ***EXTREMELY IMPORTANT*** the overall condition of the house and what repairs are needed.If your home needs repairs to even get to the level of value as similar homes in your area, you MUST make adjustments in the valuation of your property.
There are a few other items to be considered, but we’ll leave those details to actual appraisers.I think you have enough information now to realize that a simple comparative market analysis by a Realtor is never sufficient for determining the value of your home.
What is the Value of Your Fort Lauderdale House? Get Your FREE neighborhood comparable report right now.
Want to know what your home is worth? Interested in what your home may sell for? Fill out the form below and I’ll create a property valuation for you and send it back with an offer to buy your house. It’s that simple. Know the value of your Fort Lauderdale home AND get an immediate cash offer!
Know the Value of Your Home Before Selling
If you’re thinking about your home, it would be wise to know what it’s worth. Especially if you need to sell your home fast.
You’re going to know what the competitive nature of your local market is. pricing goes beyond knowing value. pricing is a strategy. You want to make sure that your home is marketable. You have to know when to raise or lower your asking price. You have to know what, if any, concessions or enticements that you’d be willing to offer.
Don’t get caught playing catch up. By knowing what your home is worth, and what the comparables are in the market BEFORE you begin the sales process is smart business.
The Importance of Knowing the Value of Your Fort Lauderdale Home Before You Sell It
There is only 1 reason why a home doesn’t sell quickly in today’s South Florida real estate market. The reason a home doesn’t sell is because the property is incorrectly priced.
There are lots of different reasons why home owners incorrectly price their home and it’s important that Sellers don’t make the mistake of relying on what the price of ACTIVE homes are listed at.
This video shows you why your home may not be selling and why pricing is so very important.
Ignore Zillow Zestimates. Zillow Sucks
I wish there was a better way to say that but unfortunately, there isn’t.
It’s critical that home sellers avoid some of the inaccurate ways to price a home, such as using the homes assessed value or using an online home valuation estimate, such as Zillow’s “Zestimates.” There is no possible way an online website based out of San Diego, CA can accurately determine the worth of a house in Fort Lauderdale, Florida.
Appraisals used to be hard to come by unless you hired a professional, but thanks to the advent of the Internet and related technologies you can now pull up a valuation in seconds.
Zillow is probably the frontrunner in the automated appraisal business, with its Zestimate now a household name.
In short, the estimate or value Zillow comes up with might be far off or spot on, depending on the local market and recent comparable sales.
From what I’ve seen, the data always seems to be delayed though, and thus the values tend to not be update quick enough to accurately reflect the value of a house in the Fort Lauderdale real estate market.
Zillow will try to give you a value but it should come with an asterisk and say, “for entertainment value” only. Again, as with a CMA that a Realtor creates, ask any mortgage lender what they think of a Zillow guesstimate. Ask them if they will use Zillow’s data as the basis for giving anyone a loan to buy your property.
What is a Zestimate®?
Here’s Zillow’s own disclaimer that tells you not to rely on their information:
The Zestimate home valuation is Zillow’s estimated market value for a home, computed using a proprietary formula. It is a starting point in determining a home’s value and is not an official appraisal.
Think I’m picking on Zillow? Here’s what their own CEO said:
Zillow CEO Spencer Rascoff says Zestimates Are Inaccurate
When asked about the accuracy of Zestimates, Zillow CEO Spencer Rascoff answered that they’re “a good starting point” but that nationwide Zestimates have a “median error rate” of about 8%”. Now let that sit in. Focus on this. He used the word, median. Which means it could be even more inaccurate.
But let’s give him the benefit of a doubt. If you think that your home is a $300,000 property based upon a Zillow estimate, it may only be worth $276,000. (less 8%)…or even less. Do you want to count on a fluctuation that high?
Other Ways To Find Out the Value of Your South Florida Home
There is only one way to truly assess how much your home is worth. And that’s by using very strict comparable sales data as detailed here.
However, the most accurate determination of value is predicated by the market as home value, like any product being sold in the marketplace is ultimately determined by how much a specific buyer is willing to pay for a specific item, at a specific point in time.
Everything else is conjecture.
I hope this information helps you to determine how much your Fort Lauderdale home is actually worth.