I chose 5 Park City properties that closed last week. I compared the closed price to the “estimated value” using a popular website.
- 1226 Lowell Avenue-closed for $866,000; estimated $919,000. Accuracy: 94%
- 9041 Daybreaker Drive-closed for $731,000; estimated $787,000. Accuracy 93%
- 605 Mountain Holly Lane-closed for $2.5 million; estimated $2.3 million. Accuracy 92%
- 1717 Teal Drive-closed for $419,000; estimated $503,000. Accuracy 83.3%
- 3320 Tatanka Trail-closed for $2,089,694; estimated $2,150,000. Accuracy 97%
In contrast to other states, where the sale price is public record, Utah is a non-disclosure state. That means the sale price is not public record. The sale price reported on the Park City Multiple Listing Service is not accessible to the public. I do not know what data online services use to estimate property values in Park City.
As you can see, sometimes they get it right and sometimes they get it wrong. The home on Tatanka Trail is a Promontory Ranch Cabin. It is a developer built home and similar to other developer built homes in the immediate area. In contrast, Teal Drive is an older home in a neighborhood where some homes are still original and others have been improved. I showed Teal Drive and remember that it had a tiny master bathroom and closet. Those two qualities may not show up in a computer calculation, but clearly had an impact on the price a buyer was willing to pay for this home.
Buyers do not always think like computers. Purchasing a home is a qualitative and quantitative experience. A home in pristine condition with tasteful furnishings, upgraded finishes, a floor plan that makes sense, views, and an easy driveway will drive value up. Whereas a home that is beat up with older furniture, older finishes, a weird floor plan, no views and a steep driveway will drive value down. It’s impossible for a computer program to take these items into account.
A real estate agent who has been inside a home and who understands the competing properties will be able to provide a much better assessment of a home’s value.
If you are curious about the value of your Park City home, please contact me for a complimentary valuation. There is no obligation.