Question: Why is my homes’ value in a CMA (Comparative Market Analysis, prepared by a Real Estate Professional) so different than the AVM (Automated Valuation Model) value I'm seeing on-line?

Answer: Websites use complicated software programs to automatically calculate an AVM of your property.  It’s mathematically generated using information that is available to the public; things like property taxes, assessments, and other data. There are two major issues with these computer-generated values:

1) Each website uses its’ own computer program to calculate the value; these programs are different from one site to another. While these programs have some similarities, they will ultimately calculate home values differently due to the way different programmers write code and what sources is used for data. It’s not unlike to two different writers writing books about the same subject - there may be similarities, but ulitmately, the result is two different books. It’s very easy to see clear evidence of this: check a few different websites - the AVMs for your house will vary from website to website, and in some cases, dramatically! If these websites calculated values accurately, they would all produce the same figure… and as you see, they do not. Did one website come close to the Real Estate Professionals’ valuation? Statistically, this will happen on occasion - but here’s why these figures cannot be accurate:

2) A Real Estate Professional will add factors into the equation not readily available to the public. Factors like quality of construction, condition of the house, location (AVMs generally divide neighborhoods by zip codes) demand for your type of home, amount of updating required, market conditions, your financial goals, etc.  One of the biggest factors is the interior of the house – updated kitchens, condition of heating systems, flooring - things a computer program cannot “see”. Because we personally meet with you to tour the property, closely examine its’ marketability and discuss your goals, we are able to add this critical data to our calculations - resulting in far more accurate valuation for your property.

SUMMARY: A skilled Real Estate Professional will carefully calculate a value for your home using ALL the information available: 1) public information 2) information obtained when physically touring & evaluating your property 3) market conditions 4) your financial goals – to provide a realistic valuation of your home that a website SIMPLY CANNOT.

Call me today for a free valuation of your property at (401) 527-7894.

-Deb Jobin