You’ve done your comparative market analysis (CMA) and know the price where the property should sell. After making your case the seller pulls out a Zestimate for the property and says, “Well, Zillow says my house is worth …!” What do you do?
Today, most sellers will search for their home’s value online. One of the most popular destinations to obtain this information is Zillow, which has a great series of apps for mobile devices that allow you to see its “Zestimates” (automated valuations) simply by pointing your mobile device at a specific property.
Pricing properties in many areas is pretty straightforward. If you have comparable sales in the same subdivision with comparable amenities, the most recent comparable sales are good indicators as to what the ultimate selling price will be.
In other areas, it’s not as clear. In some areas you can have a large, new McMansion next to a 100-year-old teardown. In other areas, the same floor plan can sell for 50 to 100 percent more depending upon the view, the location, or in the case of a high-rise, the floor upon which it is located. The question you must face is how to cope with this issue when it comes up in a listing presentation.