Automated Home Value Tools-How accurate are they?

What’s up with my home value?  …Probably not much!

Most homeowners in Denver and the surrounding cities saw a decrease in their “automated” home values over the winter.  For some it was a slight dip and for others it seems more like a nose dive!

When I say automated, I am talking about the “value” you track on sites such as Zillow or Homebot.  These values are assigned to a subject property based on algorithms and the public record of home sales in the area of the subject property.

This can be a good way to track your value over time but for those who are checking day to day or week to week, these tools can cause concern and downright panic!

No need for panic! We generally see a dip in the fall and winter months every year. This year the fall/winter lull came earlier and dipped lower than 2017 BUT you should start to see that curve back up again in the coming months! The Denver market is still strong and expected to continue to appreciate. Experts are still saying that inventory, although increasing over past years, still cannot meet buyer demand in Denver.

Back to automated home value sites- Remember that these automated home value sites do not take into consideration the updates to your home, the lack there of or the emotion in the market at any given time. Should you be looking to put your home on the market these factors which are crucial in pricing your home can best be determined by a local Realtor.

If you are not looking to sell your home these automated home value sites can be a great wealth management tool if you get started on the correct path.  Many of these sites allow you to go in and adjust the value you believe your home to be (which is best determined by a local Realtor) and from there on will be adjusted according to the preset algorithms.  While automated value sites are still not perfect, they can be a good place to monitor all your real estate investments.

Homebot is my preferred asset management tool for real estate holdings. For those of you who have real estate investments in different states, HomeBot is not just for Colorado homeowners, it is available for most states in the US! Once you are signed up on Homebot you have access to LIVE market updates on all your real estate holdings.  When using Homebot a detailed breakdown of the following areas are available to you on your assets at anytime.

  • Estimated current market value of your home
  • Appreciation since you purchased your home
  • The net worth/equity in your home
  • Breakdown of principle and interest paid
  • Tips for how to save on interest payments
  • Estimated cash you have to take out
  • How much your property could rent for

Below you can see examples from a property I have received permission to share with you. Here is what your dashboard will look like.  Notice the the increase in value in 2018 followed by the “nosedive” during the fall/winter for this particular home.  This is common across the board. Good news is that while most homeowners saw that dip, their current value should not be lower than it was this time last year.  If it is I recommend you getting a professional CMA to set a correct value for future tracking!

The key with automated value sites is making sure that the current “value” of your home is correct today.  When this is done up front your home value should adjust more appropriately according to the algorithms and market changes.

Get started for FREE on Homebot today!  If your home value does not look correct you can request a free CMA (comparative market anaylsis). This is provided free of charge by a professional Realtor.

Link to your new Homebot account:  http://bit.ly/2GB3g2f

Chantal Gemperline | Associate Broker, Realtor, SRES | Colorado Home Realty | CSellsDenver.com | Chantal@Coloradohomerealty.com

Author: livelovelittleton

Please visit my bio at CSellsDenver.com

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