Hope you enjoyed that extra hour of sleep. We're waking up to a beautiful, sunshiney Colorado day!
Big news in real estate this week. Zillow announced it's shutting down it's i-buyer program, Zillow Offers, after reporting a loss of $328 million and triggering a 25% workforce layoff. CEO, Rich Barton, added, “Fundamentally we have been unable to predict future pricing of homes to a level of accuracy that makes this a safe business to be in.” Zillow admitted their algorithms for a homeowner's "Zestimate" were no longer accurate due to extreme market volatility.
Zillow Offers is predicated on a “need to forecast the price of homes accurately 3 - 6 months into the future,” which has certainly proven challenging amid pandemic-induced supply and demand shocks.
Zillow now has an estimated 7,000-9,800 homes to sell likely at a discount. How does that impact our local market? Surprisingly, not much. According to the Pikes Peak MLS, as of Sunday 11/7, there are a total of 23 Zillow-owned homes for sale, ranging in price from $276,000 for a townhome off Academy and Maizeland to $599,900 for a Cheyenne Mountain single-family home.
Predicting home values is not an exact science, at best, it's a combination of the technical as well as the human element.
A CMA, or Competitive Market Analysis, is an exercise in research. using historical data as well as looking at our current market conditions.
My research for you starts with neighborhood homes sales of comparable floor plans, within 1 mile (or more if you're on acreage) and last 6 months, similar to criteria used by appraisers. What is the average list price vs. the actual average sold price? How many days on the market did the highest sold home take?
I investigate Pikes Peak Regional Building permit history to determine if new HVAC was installed, new roof, basement remodel, etc. Are we competing with new construction? I'll comb through MLS photos to compare what, if any cosmetic upgrades, were done. Did the comps replace kitchen cabinets, countertops and flooring, or simply give their kitchen a new paint job?
After touring your home, we'll take a look at how you compare, how soon you want to move, do you need to buy as well, what terms and price gets you the most money at closing? It's my job to aggressively market your home, which always includes professional staging and photography, to maximize your visibility so you receive only the highest and best offers.
Then, the vetting process begins. I'll call the prospective buyer's lender to confirm they are still indeed qualified. Call their agent, have they submitted an offer on another home? An all too-common practice in hopes they'll get one accepted offer, but risky as a seller to accept because this buyer may not be committed to your home and back out later.
Unlike an i-buyer, I'll be there when the appraiser shows up with print outs of the comps to justify our price. In this fast-paced market, appraisers are evaluating dozens of properties a week, and appreciate any legwork we've done to determine today's market value of your property.
If you're considering selling in the upcoming months, I'd be happy to stop by to discuss your plan. What's your motivation? How soon would you like to move? Is there work to be done? If so, let's figure out what investment gets you the most return or if it's necessary. I'll help you navigate all the variables to make this a smooth and successful process to get you the best deal.
I'd like to express to you all, how thankful I am for your support. Best wishes to you and your family for a Happy Thanksgiving!
Warm regards,
~ Kim
