Good day everyone!
I’m always asked how the real estate market is doing on a daily basis especially now a days after we all experienced or know someone who has been affected by the huge price drop in Santa Clara County Real Estate or San Jose Real Estate over the last 4-5 years.
I find that the most common question asked time and time again is, “what do you think my home is worth?” Without visiting the actual home and doing an actual comparative market analysis, I always say here is my range after asking certain questions like, what size, location (corner lot, located on a busy street, freeway nearby ect.). Then there are many more factors such as nearby comps from the last 3 months that tell a story of where the neighborhood is heading (depreciating or appreciating).
Somehow, I always hear a different number from the homeowner and I ask where did you get that value from? 9 out of 10 times I hear websites such Zillow. I proceed to tell people that they should be careful when reading what their values are stated as it is only based on a computer generated number rather than knowing the difference in value based on location, amenities, comps for that zip code, ect. I say zip code because there are many areas in San Jose that change zip codes, or on one side of the street versus the other side that lead to more value or less for that matter.
The problem I come across with sites such as this is that homeowners generally don’t read the fine print at the bottom stating how accurate they are, but tend to only read what is in front of them after inputting their address. I’m not saying it’s Zillow’s fault since they do supply a graph listed below that states how accurate they are, but most don’t see it.
5 years maybe 6 years ago I found that Zillow was saying a home was worth more than it can ever possibly receive on the sale, but these days it is stating the opposite. The problem is that it is making buyers believe that the Santa Clara County Real Estate or San Jose Real Estate is still coming down when the reality is most areas are doing very well. Here is the deal…if you are a buyer and waiting because you read the numbers on Zillow, you will want to wait on buying a home, but if you actually go out and experience in the real world of real estate you will see something very different such as multiple offers, prices increasing, buyers coming in with 20% down or more. That leads to shock with my buyers 100% of the time…why because it’s different from what they read before entering the market. I’m including a graph below not to bash Zillow, but to educate everyone on what most may have missed at the bottom of their website for disclosure. I think if they read this they wouldn’t fear so much from buying or writing an offer for what the home is worth leading to missing out on a home. That being said, I arm myself with lots of real number graphs for any particular area and stories to go with the neighborhood in order to validate myself with real estate and in turn the education to my clients are well taken. It’s the buyer or seller that has not met with a good Realtor who can talk real numbers and has great experience with neighborhoods in the area who tend to lose out because of information taken the wrong way. So, you can see how important it is to not only read, but talk with an actual Realtor before staying away from buying or selling in San Jose, CA!
Below you will see for Santa Clara County, Zillow states they are 80% within 20% of the sale price or in other words they are saying that 20% of the time they are 80% inaccurate or 68% of the time they are 95% inaccurate from the sales price. Again, I’m not bashing Zillow only bringing forward what most don’t read as this graph provided by Zillow is not found on the front page of the site therefore homeowners or home buyers tend to be a little off on their expectations when it comes to a value for their home or want to buy a home. Example, when writing an offer for a new client who wasn’t referred to me, but meeting online, they tend to write based on an online site saying what the home is worth, and ultimately losing out on the home after seeing how much it sold at close of escrow.
I hope this helps buyers and sellers do their due diligence before learning the hard way after not listening to their Realtor on what is really happening in our great County of Santa Clara or San Jose, CA Real Estate! Enjoy…