Estimates on Home Values

Mississippi is a non-disclosure state. This means that the price you pay for your house is your business and no one else’s.

So when you are looking online for a new house in Mississippi, you may see some real estate websites offering an estimate that is much lower than the seller’s asking price.

Does the seller think too highly of their home?

Is the value really what the estimate states?

Beware of these estimates. In Mississippi, since the last selling price of a house is not public record, these websites are simply guessing and these guesses can do harm to the integrity of the local housing market.

The LA Times wrote a story on this issue in 2015 which gives insight to this being a nationwide problem.  This article is helpful.

If you really want a particular house and don’t want to use a real estate professional’ help, then you need to take the seller’s word for the value. Chances are, before they decided to sell their house, the owners were offered a Competitive Market Analysis (CMA) from a local Realtor(r) and are confident in their pricing skills.  Also, remember that while the seller is not using a real estate professional you shouldn’t assume it’s ok to take the 5-7% commission off the price they are asking.  If the seller has already discounted that price, your offer could be insulting. There is always a point where seller and buyer meet but if the seller comes back with a counter offer closer to their original price, you might want to follow their lead and either take their counter offer or make another counter closer to their price. An insulted seller may simply reject your offer and not give you a chance to redeem yourself.

If you are using a buyer’s agent to help you find a home, trust their opinion on the pricing of the homes that you are looking at.  A low-ball offer is insulting to the owner and if taken can affect the local market and ultimately your resale value. Real estate professionals do have access to the paid amount of a property.  A low price can affect the CMA and can question the integrity of the house when you go to sell it in the future, bringing you less money.

Beware of online estimates.

Eileen Saunders, Realtor with Tommy Morgan Realtors~2092 Old Taylor Rd, Oxford, MS 38655~662-404-0816 or 662-234-5344~Equal Housing

 

 

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