Beware: The Online Estimate
When something sounds too good to be true, it usually is. The convenience of the online real estate estimate is obvious, but just how accurate are these estimates and do they provide the true market value of a property? The answer is a resounding, “No!”, as evidenced by a comparison between recent sales to their Zestimates (see below).
These automated systems provide broad, ambiguous figures which can be highly misleading for anyone trying to determine the true value of their home. Using pre-programmed computer algorithms and pattern-recognition software, these web search engines arrive at a predictive estimate without the benefit of human interaction. A computer cannot, however, detect the emotional value of a home; the unique, intangible features which evoke an emotional response
(e.g., jaw-dropping views, custom features and amenities, costly renovations, an historic landmark designation, etc.). As such, these computer-generated estimates are hardly reliable; oftentimes over-estimating a property's worth as well, which can lead to great disappointment.
Note the vast differential between the Zestimate and the
actual sale price
of ten (10) properties sold within the last thirty (30) days in San Francisco and Southern Marin:
2765 Filbert St. - $3,443,750
Zestimate: $3,944,808
Differential: $501K+
681 11
th
Ave. - $1,800,000
Zestimate: $2,279,391
Differential: $479K+
3621 Scott St. - $2,450,000
Zestimate: $2,922,734
Differential: $472K+
2153 Lake St. - $3,200,000
Zestimate: $3,578,624
Differential: $378K+
3903 Washington St. - $5,800,000
Zestimate: $6,157,113
Differential: $357K+
466 Hill St. - $3,150,000
Zestimate: $3,470,139
Differential: $320K+
205 Round Hill Rd./TIB - $2,080,000
Zestimate: $2,817,405
Differential: $737K+
122 Red Hill Cir./TIB - $1,200,000
Zestimate: $1,582,105
Differential: $382K+
20 Sheridan Ct./MV - $1,865,000
Zestimate: $2,210,252
Differential: $345K+
7 Saint Lucia Pl./TIB - $1,850,000
Zestimate: $ 977,718
Differential: <$872K>
Our limited inventory in San Francisco and Marin, coupled with high demand, portends that most listings, if priced right from the outset, will command multiple-offers and ultimately sell for over asking. For an educated and accurate valuation of your home, pick up the phone and call me and my team today. We are active in both markets and are exceptionally qualified to prepare a comparative market analysis (CMA) of your property, reflecting its true value.
I am delighted to connect with you and look forward to discussing any real estate related questions or concerns you may have.
