What is My Home Worth? What is Zillow, and is It Helpful?
Determining the value of your home is an essential step in making informed decisions about selling or downsizing. Knowing your Santa Barbara or Montecito home's worth can help you set a competitive asking price, understand your equity, and plan for your next chapter.
As your trusted professional Real Estate Agent, I can come in and perform a Market Analysis: Home value is determined mainly through a Comparative Market Analysis (CMA). This involves examining similar homes in your area that have recently sold, are currently on the market, or were listed but have yet to be sold. Compared to others, the analysis considers location, size, age, condition, and home features. As a full-time local real estate professional who knows and understands your neighborhood, we can sit down and have coffee and review the actual numbers of what you can expect in today's market.
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Importance of Recent Sales: The most significant factor in determining your home’s value is the sale price of comparable properties in your neighborhood. These sales indicate what buyers are willing to pay under current market conditions. It's crucial to look at homes similar in proximity and characteristics to your own.
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Home Appraisal: A professional appraisal is another critical component in determining home value. An appraiser provides an unbiased estimate based on a detailed evaluation of your home's features, upgrades, and overall condition. Lenders often require this assessment if a buyer is financing the purchase.
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Updates and remodel projects on your home over the last ten years. How old are the roof, appliances, plumbing, electrical systems, flooring, paint, lighting, landscaping, curb appeal, useable yard space, garage or street parking, and room to add an ADU? All these things will factor into the price a potential buyer may be willing to pay for your home.
What is the Deal With Zillow? Is It Accurate?
The accuracy of Zillow's home price estimates, known as "Zestimates," can vary. Zestimates are calculated using an automated algorithm that considers public data, user-submitted information, and recent sales of similar properties. However, several factors must be considered regarding their accuracy: Zillow is a tool, and it does have value, but the only way to truly understand the market is with a skilled real estate advisor.
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The accuracy of a Zestimate depends on the quality and quantity of data available in the Santa Barbara and Montecito areas. The estimate may be less accurate if there is limited data or recent sales. There are so many local market variations, and neighborhoods are a specialty in getting accurate pricing of a potential successful sale price: Zestimates may not fully capture local market conditions or unique property features that can significantly affect a home's value.
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If you have made updates and renovations, these are not reflected in public data, and the Zestimate may not accurately reflect its current value.
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This is important to consider. While Zestimates can provide a general idea of your home's worth, this number will differ from a professional home appraisal or a Comparative Market Analysis (CMA) conducted by a real estate agent for a precise valuation.
Call me to come by your home and accurately assess what you could expect to sell it for in the current Santa Barbara/Montecito real estate market.
Deborah's final thoughts to consider.
Understanding what your home is worth is more than just numbers; it’s about feeling confident and prepared for your next steps. If you have not sold a home in the past 20-30 years, you may not know what your home might be worth in today's Santa Barbara market. If you're curious about your home's value or considering downsizing or moving, contact me for a personalized home valuation assessment. I can provide a clear picture of your home's current market standing and help offer solutions to downsizing after 30 years in a home with a comprehensive one-stop team of professionals to help you make informed decisions about your future.
Warm regards,
Deborah & Kelsey
