Market Conditions in Venice>Question Details

John Costello, Home Buyer in Virginia

Why do almost all the homes seem to be listed considerably above the average sales price for comparable properties?

Asked by John Costello, Virginia Sun Jul 15, 2012

This question was asked from http://www.trulia.com/property/3088375513-4378-Via-Del-Ville…

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5
John: Real Estate agents are always defending ourselves against Zillow, Trulia and other evaluation websites. Many Realtors use them as sponsor sites and useful information but they're hardly ever correct in valuating a property. They aggregate sales in the county and come up with their evaluation, which in most cases is on the very low side. When they aggregate properties , they don'y know if the property is on a golf course, waterfront or next to a landfill. Buyers believe their numbers because they're a big company or a public company and feel what they post is always correct. THEY ARE NOT. Use a Realtor.
Jim Soda ... TheSodaGroup.com
Keller Williams Realty
Serving the Greater Sarasota and Lakewood Ranch Areas.
1 vote Thank Flag Link Sun Jul 15, 2012
Couldn't have said better myself Jim.d
Flag Sun Jul 15, 2012
John:

You should understand how Trulia and Zillow operate.

First of all, they are not licensed real estate brokers. They are not a substitute for the local MLS. Both sites scrape public tax records, take the tax value of a property (which has nothing to do with market value), and they apply a mathematical formula to arrive at a "value".

There is not a single mortgage broker or lending institution that will use a Trulia or a Zillow home "value" when performing a property appraisal.

Would it surprise you to know that Trulia and Zillow do not exist to sell you a home, but exist to draw a large number of viewers to sell to advertisers? That is their business plan.

You can learn more about how their data applies directly to the Sarasota market here on my website: http://www.davidbarrhomes.com/debunking_zillow

If you need help searching, or finding real comparable values in a particular neighborhood or area, please feel free to contact me.

Best regards,
David Barr, Broker Associate
Sandals Realty
Twitter: @sarasota_homes
Blog: homesinsarasota.blogspot.com
1 vote Thank Flag Link Sun Jul 15, 2012
I'm finding this trend in many areas in my market area too. This is caused by prices declining since the purchase of the owner's homes and they must try and get back what they put into it or they will have to make payments to the bank after their home is sold or short sale the home. They also have the choice of removing their home from the market if the home does not sale.

This is why it is critical to understand home value and make sure your Realtor understands home value. If you do not review every sale in the area before you bid on the home, you may be paying over market value. And in a downward market, this will not be fun when you refinance because YOU will be the one losing money.
0 votes Thank Flag Link Mon Jul 16, 2012
John,
When seller start paying MORE than list price for a home, the trend will move in the other direction.
Average list prices will ALWAYS be above average sold prices. The math can not work any other way unless of course sellers decide to pay above list...now that would be interesting.
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Now, as others have pointed out, if the numbers you are looking are are on Fantasy web sites....well, what do you expect? You can read everyday posts by citizens regarding the inaccuracies of the data displayed on these aggregate web sites.
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If you are ready to make a serious real estate decision, you need to use serious tools. They do not exist on fantasy aggregate websites, they are for entertainment purposes.
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The good news is reliable, accurate, timely, relevant data is right at your fingertips, if you choose to use real data. The choice, as always, is yours

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
727.420.4041 - Chat with me on: http://www.RealestateMadeEZ.us
0 votes Thank Flag Link Mon Jul 16, 2012
This home is a highly upgraded custom home in the gated community of Venetia. It is listed at $387,700. Some of the comparables sold at $347,500 on 4/30/12 and $325,000 on 1/30/12. Core Logic gives this home an estimated value of $392,470. The current MLS listings of 3 bed 2 bath homes in Venetia range in price from $325,000 to $445,000. Prices have been going up in this area since October 2011.

You can search for homes on my web site at tammyhayesre.mfr.mlxchange.com. I would be happy to send you some listings of interest if you could send me your search criteria.

Tammy Hayes, Realtor
Green Lion Realty, Port Charlotte, FL
tammyhayesre@gmail.com
941-276-6185
0 votes Thank Flag Link Sun Jul 15, 2012
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