Sellers often think their home is worth much more than it really is worth.  How does an agent determine asking price on a unique or luxury home?  Are online evaluations more reliable than an updated appraisal?  Can the intricacies of home appraisals ever be replaced by algorithms? On this episode, I tackle these questions with Mark Morgan, a veteran real estate appraiser who specializes in luxury homes.  He outlines the important factors that should always be considered when evaluating properties.
 

I recommend getting a pre-appraisal before versus relying on an online evaluation. Algorithms are taken as accurate, but nothing could be farther from the truth. -Mark Morgan
 
Takeaways + Tactics

Most of the time, online evaluations quote less than 50% of the actual price of luxury properties.
Appraisals are an opinion of value, and evaluations should always factor into account the specific features of a property.
To determine value, appraisers need to consider scarcity, desirability, utility, and purchasing power.

 
Though online appraisal tools may offer an easy answer, the fact remains that sellers want to find the highest possible price for their properties. What better way to fetch high returns than through comprehensive evaluations? Professionally conducted appraisals continue to be the best way to identify property value. Quality resides not in algorithms, but in experience and specific analysis.