Feb. 21, 2006 - The True Value of a Home for Sale - Zillow Buzz

Got my first issue of ZILLOW BUZZ this morning.  Or actually an email announcing that ZILLOW BUZZ is coming.

ZILLOW really is exciting news…Im not being sarcastic when I say that.  We need a shot in the arm in this business.

That being said, I would like to say something about how real agents really value property.  I read the about us notation on the ZILLOW BUZZ email and it showed how one of the partners had used spreadsheets to value his property.  I just saw an elaborate spreadheet done by an owner at The Newmark in a downtown Seattle condo.  Boy was it elaborate, and boy was it wrong.  No way that condo is worth what that excel spreadsheet says it is worth.

The way we value property is on a comparison basis.  The more we see the better we can value.  That is why we go to Brokers Opens (at least those of us who arent just looking for a free lunch

We have a mental running calculation in our brains.  It goes like this.  Johns listing last month sold for $700,000 and it was on the best view corner of the building, remodeled and up on the 21st floor.  Better window configuration.  Crappy cabinets, but otherwise a great remodel.  The wall was knocked out around the kitchen.  Penelopes listing down stairs on the 9th floor had the best unobstructable view, but was 600 square feet smaller.  Poor presentation.  Owner left his clothes all over the place and it smelled like sweat.  Original condition, no remodel and had a handicapped bathroom that gave it that hospital feel.  That one sold for $400,000, but it was a pre-foreclosure with the owner under the gun.  So I can list this one at $550,000.  It is between the 9th and 21st floors.  It is remodeled as to aesthetics, but no walls knocked out.  Its really worth $500,000, but I think I can squeeze an extra $25,000 out of it because its the only game in town at the moment.

I dont think a computer can do that.  Robbie, can you do a Vulcan Mind Meld?  LOL.