But they said my house is worth $300,000. What do you mean it’s not worth $300,000?
Hey guys, it’s Brad from probateresource.com. Probate Resource, we are a one-stop shop to help people going through the probate process. We have a fantastic website and channel filled with helpful content to help you navigate the unknown world of probate. We’re also a real estate solutions company. We buy properties for cash all over the country, and we have a fantastic network of real estate agents all over the US that are probate inheritance specialists that can help you get your property sold.
All right, so today let’s talk about what’s your house worth. Obviously we hear this more than we don’t hear this, but today, most people look to a certain online housing platform that starts with a Z. I’m not going to mention the names, but you can deduce what I’m talking about. And they have a tool that says that your house is worth X. Now, I’m here to say that I’m a real estate professional. I have bought and sold many, many, many, many houses, hundreds of houses over the years. I’m a licensed real estate agent in the state of Georgia. I’m very, very good at evaluating the value of a property, what it would likely sell for. I’m not a licensed appraiser, so don’t take what I say as a licensed appraisal, but I’ve done enough deals to know how to properly evaluate a property.
What I can tell you is that you should take what insert website name here says your house is worth with a grain of salt, and I’m going to tell you why. Okay. Number one. If you live in a cookie cutter neighborhood where the houses are all pretty similar, they’re all about the same size, plus or minus, maybe a couple hundred square feet, a hundred square feet thereabouts. A lot of newer subdivisions built in the last probably 20 years are very cookie cutter. All the houses are basically almost the same bedrooms, same bathrooms, all that stuff. The value you get on that website is probably going to be pretty accurate. And the newer your house is, the more accurate that figure gets because when everything is the same, it’s much easier to value it. Real estate values are all about being homogeneous. When an appraiser is appraising your house, they are looking for comparable properties to your own to calculate that valuation, so they’re going to find properties that are as close to yours as possible in terms of style of house, size of house, number of bedrooms, bathrooms, age, location, that sort of thing.
They’re going to take all those factors into account and they’re going to make minor adjustments. And basically, what an appraiser does is they take usually up to at least three comparable properties and they’re going to make minor adjustments to make those other three properties almost the same as yours, and then they’re going to calculate an average price per square foot based off of that number and then assign that number to yours. That’s how typically an appraiser does an appraisal value on a single-family, owner-occupied property in the US. That’s how they typically do it. The website we’re talking about uses online data. They’re also doing something similar where they’re looking for stuff in the area, looking at average price per square foot. They’re looking at bedroom bathrooms counts, and they’re making adjustments in their algorithm.
The one thing that their algorithm cannot look at is the style of house. So sometimes, housing styles are really unique. We’ve had instances where we look at a house maybe in an older neighborhood, and maybe someone came in later and bought up an empty lot in that neighborhood and maybe there was one or two builders originally for that neighborhood, and then somebody came in and built a fully custom house, and that house stands out like a sore thumb. It’s not like all the rest in the neighborhood. It’s very difficult to value that kind of house. If you have a very unique house compared to your neighbors, coming up with an accurate valuation is going to be a little bit more difficult than normal.
Also, they can’t take into account condition of your house. Many times, we’re dealing with properties maybe that need a little bit of work, and they can’t see your house. They can’t see photos inside of your house. They don’t know the condition. Especially the older your house gets, the more likely it could be in disrepair because as properties get older, they just require more maintenance or they haven’t been updated. So maybe based off of their data and their algorithm they’re using, they see your neighbors down the street sold their house for $500,000, but what they don’t know is that your neighbor’s house had a brand new kitchen in it that they just did two years ago. They redid their master bathroom last year. They had all new carpet. They’ve replaced all the light fixtures in the house. They’ve done a beautiful landscaping job in the backyard with a cool patio, and they’ve done all of these upgrades to the house.
And then your house that you live in was built in 1985 and not a thing has been done to it since 1985, other than maybe you changed the carpet out 10 years ago. But otherwise, everything is the same. You have dated finishes in the house. There’s things that are in disrepair just because of the age of the house. Maybe the roof is 10 years old, 15 years old, getting near the end of life, that sort of thing. The online algorithms cannot account for those variables, so you have to take what you get online with a grain of salt when you’re analyzing that valuation.
The best way to get the most accurate valuation on your property is first of all to hire a licensed appraiser in your area. Second of all, you can get what’s called a BPO or a broker’s price opinion from a broker or a real estate agent, and I would make sure you pick someone who knows your area well. Most agents and brokers are somewhat local to their area. They have a small farm area, as they call it. A very small area. They know the area very, very well, and they’re going to be able to give you the best valuation for your property. Also, if they’re giving you a BPO compared to just asking you what you would list the house for, they’re going to be more accurate because.
I have known many, many agents who are going to list your house for probably much higher than it would sell for. And in this market today, in 2024, that is a terrible strategy that used to work two years ago. But today, that strategy is a terrible, terrible strategy to list houses. Your property will sit on the market, and it will sit and it will sit and will sit. So make sure you’re hiring an agent who understands the values. Also, if you’re getting offers from investors, just understand naturally that investor offer is going to be lower than what you would get out if you listed it out on the market. That’s always going to be the case, and if someone tells you otherwise, they’re lying to you.
We always tell sellers if they reach out to us, just understand that we have to make money on this transaction. I have to make a profit, or I have to be able to rent the property out and that sort of thing. So if you’re expecting me to pay full market value that your neighbor down the street sold their house for, it’s likely not going to happen. But what we do offer as investors is convenience and speed. I can close on a house in a week or two. I can also let you leave everything behind in the house and you just take your toothbrush with you. We have that flexibility of being able to provide that sort of thing, so make sure that you’re working with someone who knows what they’re doing and can accurately give you their honest opinion about what the value of the house is worth. So you got to pay attention to the comparables and you got to pay attention to other sales in the area and make sure you’re working with someone who knows it well.
To recap everything, if you’re looking online for evaluation of your house, take that with a grain of salt, and I would highly suggest you trust the opinion of a professional in this business and not of what some computer tells you online, because the computer can’t see all of the things that a real person in real life can see and make a proper evaluation. I hope that helps you out.
If you have a property that you’ve inherited that you are interested in selling, we’d love to buy it from you. We’ll make you a cash offer on that property. We buy properties for cash all over the US. We buy as is, regardless of condition. Or if you feel like you want to go the traditional route, you want to list that property, get top dollar for it, we have a fantastic network of real estate agents all over the US that we work with that are probate and inheritance specialists, and they can help you get your property sold. So if you’re interested in working with our company, click on the link below in the video or go to probateresource.com. There will be a form there on the site. You can fill out that form or there’s a phone number there on the website. You can pick up the phone and call us. We’d be happy to chat with you about your property. Thanks for watching the video. I’m Brad with probateresource.com. I hope you have a nice day. Bye-bye.
What do you mean IT’S NOT WORTH THAT MUCH?
Hello there! Today, we will discuss how to determine the value of your house.
Many people rely on a popular online platform that starts with a letter “Z” to find out their property’s worth. However, as a licensed real estate agent in Georgia with years of experience in buying and selling hundreds of houses, I can say that I am capable of properly evaluating a property’s value. While I am not a licensed appraiser, I can give you an accurate estimate of what your property is worth. Please note that my evaluation should not be taken as a licensed appraisal.
It’s important to be cautious about relying too much on the estimated value of your house from a website.
Let me explain why.
Firstly, if your house is located in a neighborhood where the houses are very similar in size and style, especially if it’s a newer subdivision built in the last 20 years, then the website’s estimate might be quite accurate. The newer your house is, the more reliable the estimate is likely to be because when all the houses are almost the same, it’s easier to calculate their value.
Real estate values depend on the similarity of properties. When an appraiser is valuing your house, they compare it to similar properties in terms of style, size, number of bedrooms, bathrooms, age, and location.
Factors To Consider
When appraising a single-family, owner-occupied property in the US, an appraiser takes into account various factors and makes minor adjustments based on at least three comparable properties. The appraiser tries to make those three properties almost identical to the property being appraised and calculates an average price per square foot based on that. This average price per square foot is then assigned to the property being appraised. The website we are discussing also uses online data to determine the value of a property. They consider factors such as average price per square foot in the area, number of bedrooms and bathrooms and make necessary adjustments in their algorithm.
Factors That Should Also Be Considered
Sometimes, the algorithm used for valuing houses cannot consider the style of the house. This can be particularly challenging when a house is unique in style. For instance, in some older neighborhoods, it’s possible for someone to buy an empty lot and build a fully custom house that stands out from other houses in the neighborhood. It can be very difficult to accurately value such a house, given that it’s not like other houses in the area. If your house is very unique compared to your neighbors, determining an accurate valuation can be a little more challenging than usual.
It’s important to keep in mind that automated property valuation algorithms can’t accurately assess the condition of your house. These algorithms are based on data and statistics, and they do not take into account any upgrades or maintenance that you may have done to your property. This can be especially problematic for older houses, which tend to require more upkeep. For example, a valuation algorithm might see that your neighbors sold their house for $500,000 and assume that your house is worth the same amount. However, your neighbors may have invested a significant amount of money into renovations and upgrades, such as a new kitchen, updated bathrooms, new carpet, and a beautifully landscaped backyard. Therefore, it’s important to be cautious when relying solely on automated valuation tools and consider factors such as the condition and upgrades of your property when determining its value.
Your house, which was built in 1985, has not undergone any major renovations or updates since then, except for the carpet that you changed 10 years ago. As a result, the finishes in the house are outdated and there may be some things that are in disrepair due to its age. For instance, the roof may be 10-15 years old, which means it’s nearing the end of its lifespan. When evaluating the value of your house online, it’s important to keep in mind that the algorithms used by these sites do not take into account these variables. Therefore, it’s advisable to take the online valuation with a grain of salt.
The Best Way To Get The Most Accurate Valuation
To get an accurate valuation for your property, the best way is to hire a licensed appraiser who is familiar with your local area. Alternatively, you can obtain a broker’s price opinion (BPO) from a broker or real estate agent who has a good knowledge of your area. Most agents and brokers have a small farm area that they specialize in, and they know the area very well. Therefore, their BPO will be more accurate than just asking them what they think you should list your property for.
I have come across many agents who tend to list properties at a much higher price than their actual value, which is not a wise strategy in today’s market. This may have worked two years ago, but not anymore. In the current market, this strategy can negatively impact the sale of your property, as it may take a lot of time to find a buyer. So, it’s crucial to hire an agent who understands the current market values. Moreover, if you receive offers from investors, keep in mind that these offers are usually lower than the market value. It’s always going to be the case, and anyone suggesting otherwise is not being truthful.
What We Offer
When sellers approach us, we always make it clear that we have to make a profit on the transaction. We cannot pay full market value for the house, but we offer convenience and speed. We can close the deal within a week or two and let you leave everything behind in the house. We have the flexibility to provide such options, so it’s important to work with someone who knows the value of the property and can give an honest opinion. Pay attention to the comparables and other sales in the area when working with someone who knows the market well.
If you’re looking to evaluate your house online, take the results with a grain of salt. It’s highly recommended that you trust the opinion of a professional in the real estate business. A computer can’t see everything that a real person can, so it may not be able to make a proper evaluation.
Let’s Connect
If you have inherited a property and are interested in selling it, we can offer you cash for it. We buy properties for cash all over the US, regardless of their condition. Alternatively, if you want to list the property and get top dollar for it, we work with a fantastic network of real estate agents all over the US who specialize in probate and inheritance sales. They can help you get your property sold quickly. If you’re interested in working with us, click on the link below the video or go to probateresource.com. There, you’ll find a form that you can fill out, or you can use the phone number to give us a call. We’d be happy to chat with you about your property.
Thank you for watching the video. My name is Brad, and I’m with probateresource.com. Have a great day!