That’s a great question! I’m glad you asked! You can ask different people this question and, depending on their profession or purpose, you might get very different answers. A City Assessor might be valuing your home for tax purposes and this has little to do with the market value of your home. An insurance agent who comes to look at your home because of a claim you have to repair damages is looking at the cost of building materials and their replacement value.
Since you’re probably asking what your home is worth because you’re considering selling your home, you want to know the market value of your home. The market value of your home is how much you could get from the sale of your home.
What about online tools to find out what my home is worth?
These days, you can go online and get a Zestimate on the Zillow website or use any of the hundreds of online estimation tools that are available to answer that important question of “How much is my home worth?”. These online tools use some pretty sophisticated algorithms and use a lot of data to come up with an estimate. For example, an online tool would use data of recent sales in the area and apply a formula to come up with an estimate of the worth of your home.
Are the estimates that these online tools give accurate? I would say that online tools can give you a ball-park estimate of the value of your home but that I would still recommend you speak to a local real estate agent to get a more accurate assessment. Let me explain why.
A real estate agent is better than an algorithm.
A real estate agent can do what an algorithm cannot – a local real estate agent has knowledge of your local area, of the market, and what buyers are looking for. In addition, a real estate agent will assess the condition of your home, its positive and negative features, and the specific location of your home and will use their experience to come up with a market-related value for your home that cannot be programmed in a computer.
Similar to how an online tool might work, a local real estate agent will look at recent sales in the neighborhood to get a comparable market value of your home. However, a real estate agent can go further to research the other homes to ensure that comparable sales are comparable. Not all 3-bedroom detached houses are the same. If your home is directly on Chautauqua Lake with deeded lake access, it is not useful to use the sale price of homes that are further from the lake as a comparison. If your home is in pristine condition, it is not useful to use the (lower) sales price of a run-down home as a reference value for the market value of your home.
The importance of getting an accurate market value for your home.
Getting an accurate market value for your home is important to settle on a listing price or asking price for your home. The asking price is a signal to buyers what your (and your agent’s) assessment of the market value of your home is and it can also be a signal of the condition or unique features of your home.
If the listing price is a lot higher or lower than other available homes on the market, it can affect how quickly your home sells. Currently, around Chautauqua Lake, the supply of houses for sale is low and demand from buyers is high. As a result, prices are currently on an upward trend. Despite this, there is a limit. An unreasonably high asking price might dissuade prospective buyers from even coming to look. Setting your asking price too low can cause prospective buyers to ask what is wrong with the house and their offers will reflect their uncertainty. The more on-the-mark your asking price is, the more likely you will attract serious buyers and you are likely to sell your home more quickly.
Market Value and Buyer Requirements.
Another factor that can influence the market value of your home, and which an algorithm might not be able to calculate, is buyer requirements. Whether your home is in a prime location like Lakeside Drive, Bemus Point, or your home is in quaint Lakewood, there are buyers that will value your home and want to buy it. If you have a grand old mansion near Chautauqua Institution or a smaller, starter home in Ashville, there are buyers with these requirements.
Each buyer is unique and will value features in your home differently. A buyer with children will value a home near a school, a retired buyer who loves fishing will value a home in a quiet area with lake access while others will appreciate being close to Jamestown for employment or shopping purposes. It is important to identify the positive features of a home and its location and then market a property to attract buyers that value those features.
When asking “How much is my home worth?” Call a local real estate agent.
In fact, call me! Contact me, Michael Vinney, at ERA Team VP.
I’ve spent much of my life around Chautauqua Lake and know the various communities, towns, and villages that surround it, very well. I understand the local market and buyer requirements.
From Mayville NY at the northern end of the lake to Lakewood NY at the southern end, and everywhere in between, I’d love to use my local knowledge and experience to give you an accurate market value of your home.
If you are ready to sell, let me help you achieve a selling price that reflects what your home is worth.
Let me help you buy a home or sell your home
Before searching “Houses For Sale Near Me“, search for Chautauqua real estate for sale here or check out some of the markets I serve for include: Bemus Point, Lakewood, Ashville, Stow, Mayville, Chautauqua Institution, Westfield, Jamestown, Fredonia and Dunkirk, and Ellicottville as well as anywhere in Chautauqua County or Cattaraugus County.