Click here and see what your home is worth! We have all seen this come across our email or internet while browsing. In this world of instant gratification why not!? It’s free, its quick and zero human interaction is required.
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.
My home value went up over $100,000 in one year!?
But how accurate are those values? Today Denver homeowners are more curious and skeptical than ever to know the true value of their home as prices soar due to an alarming increase in buyer demand. Incase you do not read until the end I shall share with you now that to find out the most accurate value of your home please call a local real estate professional.
Last July I posted on the topic of automatic values as things seemed to be recovering from a brief slow down from the COVID-19 outbreak and getting back on a normal track with yet another record summer of sales and average home prices.
What was not expected was the record number of buyers that would hit our market. This demand has been gobbling up inventory faster than we have ever seen before at offers $25,000-$100,000 OVER the list price. Appraisals are a mute point practically making it impossible for buyers with little cash to get into a home. Where does that leave the value of the homes next door? Well there is a saying, “A home is worth what someone is willing to pay for it”. I’m not sure who coined that phrase but its true! That sale will now be a new benchmark for future sales, appraisals AND automated home value reports.
Check out this graph showing the impressive jump in home sale prices for 2021!
Needless to say if you own a home in the Denver Metro area there is a good chance you saw a massive jump in your home’s value! Way to go. I always say the best time to buy a home in Denver WAS YESTERDAY!
If you do not own a home yet, please consider it now. We expect home prices to continue to go up and with interest rates STILL at historic lows you can afford more of a house now (even paying over list price) than you will be able to afford when interest rates rise. That will be another post.
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
If you are thinking about selling, or know someone who is, please reach out to see what is really going on in your market. I’m not kidding when I say that I have seen some homeowner’s values go up more than $100,000 in just 3 months. Sounds crazy? Get in on the crazy. Call me 970-215-1438
Chantal Gemperline | Associate Broker, Realtor, SRES | Colorado Home Realty | CSellsDenver.com | Chantal@Coloradohomerealty.com