Zestimates and Online Home Value Tools on Long Beach Island
There is no question that the real estate market on Long Beach Island and elsewhere is dominated by the internet. Real estate websites, online search tool and the availability of information has forever changed the industry…for the better! But like all new technology, there are always snags and perhaps nowhere is this more evident than in online valuations in the LBI real estate market. While there are those who say these tools will never replace a real estate agent, I personally think the technology will improve to the point where it is at least a reliable guide however we are nowhere near that point yet! There are some important things to know about online valuations in the LBI real estate market before buying or selling any home on Long Beach Island.
Online Valuations in the LBI Real Estate Market
Most websites, mine included, utilize some form of online valuation tool. These systems generally follow the same process. They will take the core data available in tax records (bedrooms, bathroom, sq. footage, etc) and apply that data to an algorithm correlated to recent sales (with data again taken from the tax records). The efficacy of these systems has a lot to do with the area. For example, homes in a large tract development tend to be more accurately valued as there is very little in the way of unique character in these homes. On Long Beach Island, the systems have a much harder time applying a value to homes. This is for several reasons, the most common of where are:
- Distance to the beach
The location of a home plays a tremendous role in the value of properties in the LBI real estate market. Let’s assume there are two homes, both built in 2016 with 5 bedrooms, 3.5 bathrooms and 2,500 sq. feet of living space and the only difference between them is one being located on the bayside and the other being located on the oceanside. To most computer model, there would be very little difference between these two homes however in the LBI real estate market they could not be more different! There would be a difference of several hundred thousand dollars between these two homes simply for the fact that one is on the Oceanside and the other on the bayside. This also bring up the subject of views. Views can add or detract a significant amount of money from a home and the current systems cannot properly compensate for that. Nor can they compensate for the preservation of a view (by this I mean can a house be built next door to the subject home and completely take away the current view). Lastly, the distance to the beach plays a role. There can be two homes that are located 5th off the beach but one may be located on the Oceanside and the other on the oceanblock with no streets to cross. This too plays a role in the value of a home in the LBI real estate market which an online value tool cannot understand.
Buying and Selling in the LBI Real Estate Market
While online valuations in the LBI real estate market cannot entirely be trusted, they can in some cases establish a very rough ballpark for where a home will sell. In time and as the technology improves these estimates will become tighter and more accurate but for now they are at best rough estimates. It is best to review the comparable sales and take an objective approach to the pros and cons for a specific house. The market will dictate the value of homes on Long Beach Island and by reviewing the comparable sales we can give fairly specific ranges for a home’s true worth. For more information about Online Valuations in the LBI Real Estate Market or the LBI real estate market in general, contact and I will be happy to answer any questions you have.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | firstname.lastname@example.org