Online Real Estate Valuations Unreliable

Rapidly Changing Market Causes Valuation Problems

Real estate valuation sites, such as zillow.com are relying on historical information based on what has sold in the past. When little to nothing is selling, how accurate can those estimates be?

In the entire Daytona Beach area, 231 residential homes and condos sold in December 2007, and 160 sold in January. The small number makes finding reliable comparisons difficult. We know that homes prices for homes sold have been falling. The Daytona Beach and Ormond Beach median home prices dropped about 12% last year, but very little has been selling. See more on Daytona Beach homes prices here.

So we have two trends that make estimating the value on current homes very difficult: 1) prices have been dropping and we have no certainty on when we will hit the bottom, and 2) few homes are selling and there are no recent comparisons available for many homes.

When buying or selling a home, I believe that all parties are interested in a fair sales price. In this market, determining that fair price is difficult. Every real estate transaction is unique with a seller who has their needs and requirements and buyers who have their needs and requirements. Whether buying or selling, it has never been important to have a plan and strategy, with your criteria and requirements clearly defined.

I am currently developing two series of blog posts that will deal with Home Buying Strategies and Home Selling Strategies. The series will be useful for both condos and residential homes. I will begin posting the Home Buying Strategies series next week. These guides will be step-by-step real estate strategy guides. I will be focusing on Daytona Beach and Ormond Beach real estate, but the strategies will be useful for any market.

If you don’t won’t to miss any of the articles in the series, click on one of RSS feeds in the left sidebar “Subscribe” box to receive notice when new articles are published. If you are unfamiliar with RSS fees, click to see a video that will guide you through the process.

Technorati Tags Buyers, Daytona Beach Real Estate, Homes for Sales, Ormond Beach Real Estate, Real Estate Market conditions, Sellers