Zillow says my house is worth WHAT???

I got a call today from a potential client who wanted to know what her home was worth, and she quoted me a figure from Zillow.com. I'm glad she couldn't see my face, because my jaw just about dropped. It wasn't overpriced, it was SEVERELY underpriced.  Zillow is all over the lot as far as pricing is concerned.

Zillow IS a good informational site, I'll give it that, but it is no substitute for a local real estate agent's price estimate. Let me explain why. There are no local agents deciphering the local market as it pertains to your house that  let the Zillow pricing module know the neighborhood nuances, which make a BIG difference.

For example, there may be one side of your street that is more desirable than the other side. Zillow doesn't know that. There are perceived or real neigborhood boundaries that Zillow doesn't understand, and cannot effectively price a home without this knowledge. There are school districts and boundary lines that may be different for you than they are for your neighbor. Zillow doesn't know that either.

So although the immediate price that this woman got when she punched in her address was way too low, yours could be way too high. At any rate, it's hit or miss when the value of your home is concerned.

Don't trust your biggest investment to an algorhythmic equation. It doesn't work. What you need is a local agent (LIKE ME!) to properly assess your homes worth, and to give you an honest and true estimate of value. All you have to do is contact me.

HomeSeller Tip #1: Pricing your Home for Sale in CT

First and foremost. I cannot stress how important it is to price your home correctly. Do you remember when you went out looking for  homes and your agent showed you homes that were obviously overpriced?  You felt that the seller wasted your time. And you probably weren't that happy about it either.  It's one thing to not care for a home that's not your style, or just doesn't have what you need, but you don't want your home to be labeled as overpriced. Oh, and BTW,
it's not your fault. Don't EVER blame an overpriced listing on a seller. It's NOT THEIR FAULT.

5 REASONS for an overpriced listing

1. The agent representing that seller didn't conduct a thorough enough market analysis and advised his/her client incorrectly.

2. The agent representing the seller did not have the courage to tell the seller that his price was too high.

3. The agent representing the seller overestimated the price to ensure that he/she got the listing,  and  figured that once he/she procured the listing, the seller would reduce the price.

4. The agent representing the seller  never advised him/her how detrimental it is to  a home sale to put excess negotiating room in the price.

5. The agent representing the seller used the "PFA" Pricing method and prayed for the 3P's.  Never heard of the PFA Pricing method?  It stands for "Pluck From Air", and the three P's? That's Put the listing on the MLS- Put a sign in the front yard, and Pray for a buyer.

That last one may have sounded a bit silly, but I am sure that you have encountered one of those type of listings in your home search if you think about it. If you want to price your home correctly, call me. I'll give you a FREE Comparable Market Analysis,  with no obligation.  And yes, you can rely on my price, and rest assured it your home won't ever be labeled as overpriced.






How much should you offer on that house?

When you see the house that you want and are ready to make an offer, where do you start? 

A lot of buyers ask my opinion of  what is called the 90% rule- (90% of the asking price) Some buyers will make what the industry considers a lowball offer of less than 75% of asking price. Some buyers want the house so badly, that they'll pay asking price with no questions asked, and no matter what type of market

So what SHOULD you offer on a home? Well, that answer depends on a lot of things, but most people will come up with a offer based solely upon the asking price of the home, a nd some agents don't even offer buyer-client assistance with pricing, and they should.

When you purchase a home, your agent should conduct an in-depth market analysis of that home

to determine a reasonable price range in the current market. Let's suppose that you didn't have that market analysis from your Buyers Agent- and you offered 90% of the asking price of a home. Only problem is that the home was only worth 80% of what is was listed for. Now without you realizing it, because you did not have the information, you just started your offer too high! Okay, so now you know, why the 90% can cost you money, and in some instances, you'll still overpay for the house.

Maybe you want to put a "lowball offer" in on a house because you like to negotiate, and you want to see how much the seller will cut his price for you.  If your agent did not give you a market analysis of the home you want to buy, you  wouldn't know that this home is underpriced, and even an offer at asking price is a good deal. Rather than let someone else figure out what a good deal this house is, and losing the opportunity altogether  because you tried to overnegotiate, be smart about it, and put ina good offer tha the seller will accept before you get into a bidding war.

It's always up to you what offer to put in on a house, and you have every right to expect and demand that your agent will give you assistance in pricing. That's a fiduciary relationship, which is what your Buyer Representation agreement outlines quite clearly.

Let me put it to you this way- If you are selling a home, you would expect a detailed markte analysis. You should have a detailed market analysis of the home that you buy, too. If the idea of a market analysis for a home that you are buying sounds foreign to you, it's time for a new agent.

Why would 3 real estate agents give you 3 very different prices for your CT home?

Just yesterday, I was at a sellers house,  and they called me in because they got wildly different prices for their home from the three real estate agents that were there before me. They wanted to get the most accurate price, and couldn't tell from what they had which one was right. The sellers were in a quandary as to what to do, and how to price their home.

Let me put it to you one way, and this is the only way. In order to price your home properly, a lot of research must be done by your real estate agent so that you don't overprice it or underprice it.

A Comparable Market Analysis ( CMA)  is an anaysis of homes that are similar to yours in one respect or another, and the agent analyzes  their pricing and the current real estate market trend in order to arrive at an appropriate price for your home.

I have seen many analyses given to sellers by agents, and quite frankly, I am surprised that any agent would submit an analysis to a homeowner without doing their due diligence.  Comparing your home to five  homes  that are on the market, five  that are under deposit, and  five  recent sales can NEVER give you an accurate price for your home. Rather, the price would indicate an average of those fifteen houses.  Some agents use less than 10 comparables in total to price your home. That just can't be effective, can it? The best  CMA's  are not all fluff, and "pretty to look at". Sure, there should  be some marketing information and a nice presentation, but  beware of the "smoke and mirrors" analysis. 
The best market analysis that you could possibly get from a Realtor is one that is so thorough , that the Realtor  does not even have to tell you a price  for your home. It will be as clear as day to you. A number of cross-referenced analyses that point to a specific number  in  the same range are the most accurate. That's the right way, with no shortcuts.  Don't settle for anything less. 

BOTTOM LINE: If you want to price your home correctly,  contact me.


Real Estate lingo defined: Is "Street Phenomena" good or bad?

Street phenomena is when one home goes up for sale on a street, and then a few others pop up for sale almost immediately. What just happened?  It does raise a minor red flag, and it is important to find out why these homes are for sale.

There are three reasons for street phenomena.

Sheer coincidence, Some type of event in the neighborhood, or Seller ego.

• Sheer coincidence- It does happen, and when this is the case, there are no worries. Some areas are more transient than others for a variety of reasons.

• Some type of event in the neighborhood- It could be that the school boundaries have  been redistricted, for example. Or yes, it is a possibility that some homeowners got spooked by an event. You'll want to find out what, if that is the case.

• Seller ego-  This is by far, the most common. Here's what happens. Joe and Jen list their home down the street with a Realtor. Bob and Betty see the real estate for sale sign go up, and inquire as to how much Joe and Jen are asking for their home. Bob and Betty think to themselves, if Joe and Jen can get THAT price for their home, we can certainly get THIS price for our home. Let's sell our house, too.Then Kurt and Kathy find out what prices those homes are listed at and join the fray. Don't fall victim to that trap.

If you are selling your home and experiencing street phenomena, it is imperative that price your home correctly. If you are a buyer, and are interested in a home located on a road  that is experencing street phenomena, it's important to find out why, and in what order the homes went on the market. It does make a difference. I  delve for details for my clients, so no worries!

So, all in all, street phenomena is nothing to get overly concerned about. Just find out the details!