real estate article | Lake of the Woods Real Estate Blog

Key Takeaways:

Automatic estimator tools are popular amongst homeowners and sellers, but they aren’t always the most reliable.
In some instances, these estimators can be off by thousands of dollars due to inaccurate data.
If you’re looking for a better way to determine your home’s market value, give us a call to get started!

Exposing the Inaccuracies of Automatic Home Estimators

If you own a home, you’ve probably wondered how much its value has increased since you first moved in. And while using an online estimator might seem convenient, you could end up with some pretty inaccurate numbers—and that’s bad news for sellers in today’s competitive market.

Want to make the most of your equity and find out how much your home is really worth? Here’s why working with a local real estate agent will always be better than trusting an “automatic” estimate.

Most estimators rely on user-reported data or algorithms

Many homeowners believe that instant estimates are similar to a professional appraisal, but this simply isn’t the case. To generate a possible selling price, these real estate sites rely on potentially outdated algorithms that use property tax assessments, historic sold data, and user-reported information. Some estimators even use AI to scan photos of your home, which leaves ample room for error.

Estimators won’t take recent improvements into account

If you’ve made any larger improvements to your home, they may not get calculated into your instant estimate. Generally, most estimators will include any permitted work that’s noted on your latest tax assessment. But if you completed a project that didn’t require permits, it probably won’t influence the estimate.

For example, if you recently finished a kitchen renovation and didn’t have to take out a construction permit, an estimator could value your kitchen based on how it was before any upgrades. And if you rely on these incorrect numbers, you could shortchange your equity without even knowing it!

Your estimate could be off by thousands of dollars

Perhaps the biggest issue with automatic home estimators is their overall accuracy—or lack thereof. While most claim to be within 10% of a home’s real market value, that 10% could equal tens of thousands of dollars. When you look at the numbers, that’s a potential difference of $30,000 for a home worth $300,000!

Above all, it’s important to remember that these estimators will never substitute a professional valuation. If you’re really serious about selling your home or learning its value, it’s better to work with a local real estate agent instead—and take an estimator’s opinion with a grain of salt.

Bottom Line: Only Price Your Home with a Local Agent

Couple getting a home valuation from an agent

Want to know your home’s true value? Don’t trust a computer—start by consulting your local real estate agent! As area experts, we know how to calculate just how much your home could sell for in today’s competitive market. We can even take your renovations and recent sold data into account for an added level of accuracy.

Get Top Dollar for Your Home

Whether you’re thinking about selling your home or just want to know its value, you can trust us to help with all of your real estate needs. Contact us to request a complimentary home valuation, or just give us a call with any questions—we’d be happy to chat!

Whether you’re looking for homes for sale in Fredericksburg, Stafford, Orange, Locust Grove, Culpeper, Northern Virginia or even Maryland or DC, we are your Real Estate team committed to finding the perfect home for you! Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by homeowners. If you wish to sell your home, it needs to be sold for top dollar, and in a timely manner. Pricing your home accurately, one of our area expert advisors will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.

To see available properties, please visit our website licatagroup.com

Research is essential before renovation, as it will help you scope your options and choose quality.

When you plan to renovate your house, the renovation is an investment in your home. When doing so, you are not only fixing it and redecorating for yourself. You are also adding value to it should you ever choose to sell it in the future. Furthermore, as renovating your house is a form of investment, it should definitely be well planned and thought out. In addition, as we continue discussing this topic, we are also going to delve deeper. We will discover the 10 essential and beneficial things one should do before renovating a house.

Renovating a House 101

A written plan and a mood board will be so helpful throughout the renovation.

Renovating a house can be a small project or a very big one. Whether you are fixing a bathroom or redesigning the entire interior look of your home, there are multiple elements to be considered beforehand. Why is a renovation something you should not rush into? The answer to this is because a single renovation should withstand time and have the quality to it. This takes good research, a solid plan and professional help, amongst many other details.

Tips 1 and 2

Meanwhile, what do you think the number one thing on the list is? When renovating your house, our number one tip to do first is creating a mood board. Gather images, samples of textures, materials and more and place it all on a board to visually create a concept and style. Placing everything in one spot will help you view what your renovation could possibly look like. A mood board is also a great idea because sometimes it is difficult to imagine patterns and textures and colors in your head at once. Having them one beside the other will help you make decoration ideas as well.

Make sure you set a budget before your renovation so that you don’t exceed your financial limits.

While we are on this topic, the mood board also ties into our second tip. Placing everything on the board helps you create a visual plan, which can also help you figure out your budget and the limits of it. Entering a renovation without conceptualizing your finances and having a budget is a bad idea altogether. You can get carried away and not even realize how much you are actually spending. Moreover, adding the cost of all your ideas will help you understand where you stand and how much you would like to spend on renovating your house.

Tip 3

Now that you have an idea of what your renovation could become visually, sit down and create a plan. This plan should consist of all the changes you plan to implement within your home. Any necessary fixes and additions you would like to see, along with the timeline of all of this. A solid list with a good schedule will help you down the road and keep this renovation organized.

Tip 4

A team of professionals will help guide you through this process with beneficial advisement.

Consult with a team of professionals. If renovating your house becomes a big project and you are unsure as to how to proceed, hire a reliable contractor and decorator to help you. A team of professionals will know and understand the standards and laws they must adhere to, taking that stressful aspect away from your to-do-list. Additionally, a team of professionals will also help you visualize your renovation and help you understand the possibilities of your house. Sometimes the layout of the house might not allow you to break down a wall, or add something, and it is good to know ahead of time what you can do and what you cannot.

Tip 5

Renovating your house is easier if you move your furniture out and have an empty space to work with. Whether you are renovating a home you plan to stay in, or are renovating a house in another city, take care of your furniture and belongings ahead of time. Meanwhile, if you are moving away, we advise on getting your household belongings to another state before you start renovating. Place your belongings in storage and keep them there until you complete and finish your new house.

Tip 6

Once your house is furniture free, our next tip is to scope out space. Once you can evaluate the empty space, it will enable you to visualize all the possibilities of your renovation. You could also check back with your mood board and written plan to see if all of that can be done within the dimensions your space allows you.

Tip 7

When it comes to the fun shopping part, don’t purchase the first option you come by. If you are going to the hardware store on your own, talk to the department associate there as they can advise you on the best options. That way you won’t buy the wrong thing or spend more money than you should have.

Tip 8

Don’t forget to prep your house for renovating. Details such as priming the walls before painting them are crucial for the wall color. Priming the walls creates a better canvas for wall paint and helps the paint look fresher and stay on for longer.

Tip 9

Check your renovation timeline once again to ensure that most things will run on schedule. Once you have your belongings in storage, it’s also beneficial to know that your renovations will be timely so that it all works out.

Tip 10

Our last but not least tip of this topic is good communication. This is important before renovating your house but also just as important throughout the renovation. Good and open communication with your contractor or whomever you are renovating your house with is very important so things would run smoothly and successfully.

In Progress

Simply being on top of everything, communicating and being guided by your plan will be more than enough for a successful renovation. Stay on schedule, and enjoy this investment into your new home.

Author’s Bio

Troy Thompson is a 35-year-old teacher, with experience in renovations and decorating homes. Not only is he a fan of HGTV, where he has learned a lot about renovating a home from various TV shows, but he has also moved a few times and renovated a few homes with his girlfriend. Troy loves sharing his advice for unexperienced renovators and hopes that his tips will help someone get started and learn more.

Whether you’re looking for homes for sale in Fredericksburg, Stafford, Orange, Locust Grove, Norther Virginia or even Maryland or DC, we are your Real Estate team committed to finding the perfect home for you! Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by homeowners. If you wish to sell your home, it needs to be sold for top dollar, and in a timely manner. Pricing your home accurately, one of our area expert advisors will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.