Wondering what your home is worth and why the value bounces around from low to high and back down again?
Many homeowners turn to automated home value sites to “see how much their house is worth”.
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!
Our “normal” housing market in the Metro Denver area goes through a pretty predictable cycle. We see activity higher in the spring and summer than in the fall and winter. This can lead to stronger home prices in the spring/summer than in the fall/winter. If you were to check your value in June (at the peak of selling season) and then again in December (typically the “slow” season) you might panic. No need for panic! We generally see a dip in activity and prices (temporarily) the fall and winter months every year.
Due to the COVID-19 pandemic you can see the graph is a little abnormal prior to June 2020. The Metro Denver area had what I’d like to call a “kink in the hose” that was released at full power once restrictions eased. We set home sales records in June, above the records we set back a few years ago! 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.
Lucky for you, if you own a home here in the Metro Denver area you have experienced great overall appreciation year over year and those seasonal dips should not be a concern. Check out this chart showing the history of home prices in the Metro Denver area. Even with the market turmoil in 2007 through 2012 home prices recovered and soared!
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.
The key with automated value sites is making sure that the current “value” of your home is correct today. (TUNE VALUE) 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 analysis). Ask your 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