What’s the difference between a High Spec and a Midrange?
Generally a high spec unit is a condominium or townhome that’s on the higher end of the market of available units in the area such as a unit that was built 2000 or newer, or if older such as pre-2000, updated to modern specifications. In other words, high spec units are on the high end of desirability for the area. Midrange spec units are those that are average to midrange in terms of desirability for the area. For example, condos with outdated kitchens, and older, dated-looking exterior buildings that require greater maintenance. Midrange units may also be units that weren’t originally built to condo specifications, such as an apartment building which was converted to condominiums. The value estimator discounts “medium” specs condos 20% relative to “high” spec condos. “Low” spec condos are too variable for our tool to estimate.
How do I use the condo value estimator tool?
To use the value estimator tool, simply type in the address of the condo (for maximum accuracy, ensure the format is as follows: Street Address, City, State Zipcode). Then type in the monthly HOA fees (if it’s paid quarterly or annually, simply divide to the pro-rated monthly cost), and lastly select the # of Bedrooms and Bathrooms the property has. Then, click Go.
How accurate is it?
Firstly, it is not a substitute for an appraisal. We believe that it’s accurate enough to be useful in various situations, but of course no automated real estate value estimation tool is 100% accurate. It’s up to you to determine if it’s something that’s helpful to you. We would never suggest relying on the estimate tool solely, as there’s often things that are hidden that can affect a condo’s value. In short, due diligence is essential in real estate and there’s no substitute for an in-person expert appraisal.
Why are so many condos on the MLS listed at about their estimated price?
This is a tricky one to answer. We did not design the value estimator tool to low-ball estimates or be unfair to sellers. Rather, we designed it to find the fairest price point for buyers and sellers. In short, either the value estimate tool is too pessimistic, or sellers are too optimistic.