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Why Are Redfin Estimates So Low in Ocala, Florida?

Why Are Redfin Estimates So Low in Ocala, Florida?

Wondering why Redfin estimates are so low in Ocala, Florida? Many homeowners, buyers, and sellers turn to this popular tool to discover a property’s home value. But in the process, they discover the estimate is lower than the property’s actual value.

In this post, Scott Coldwell and our real estate experts at Your Home Sold Guaranteed Realty - Coldwell Real Estate Services will share how low Redfin estimates are in Ocala and some reasons behind the discrepancy.

Key Takeaways:

  • In Marion County specifically, where Ocala is located, Redfin has a median error rate of 2.07% for on-market homes and 6.24% for off-market homes. 
  • Redfin uses an automated valuation model to analyze property values and provide home value estimates, which can’t account for every nuance of an individual property.
  • Local market conditions can change often, causing home values to fluctuate. The only way of staying on top of these changes and their impact on home prices is by working with a realtor.

How Low Are Redfin Estimates in Ocala, Florida?

Nationwide, Redfin has a median error rate of 1.99% for on-market homes and 6.3% for off-market homes. 

In Marion County specifically, where Ocala is located, there is a median error rate of 2.07% for on-market homes and 6.24% for off-market homes. 

In Ocala, where the median home price is $270,000, this means a Redfin estimate for an on-market home could fall between $264,411 to $275,589. For an off-market home, Redfin’s estimate could fall between $253,152 to $286,848

Why Are Redfin Estimates So Low?

Availability of Data

Redfin’s estimates are only as accurate as the data that’s available to the platform. Redfin uses multiple listing service (MLS) data to come up with its valuations for on-market homes, making it more accurate than other online tools that don’t have access to the MLS.

However, this still doesn’t mean it can serve as a substitute for a realtor who can come out to your property and inspect it in person. Even data on the MLS can’t account for the unique features and characteristics of your home that might make it worth more or less than others in the same neighborhood.

Algorithm Limitations

Like most other online tools, Redfin uses an automated valuation model to analyze property values and provide home value estimates. 

While these algorithms are sophisticated, they can’t account for every nuance of an individual property, such as unique features, recent renovations, or local market conditions. Ultimately, only a professional appraiser or realtor can consider the complete picture of your home.

Market Changes

Local market conditions can change often, causing home values to fluctuate. The only way of staying on top of these changes and their impact on home prices is by working with a realtor.

Platforms like Redfin don’t have the same ability to stay on top of the market conditions, whereas it’s a realtor’s job to keep on top of the day-to-day trends and understand how they might impact their clients.

If the market in a particular area is volatile or experiencing a downturn, it’s especially important to work with a realtor rather than rely on Redfin or any other online platform. Redfin’s estimates might reflect these trends more sharply, resulting in lower valuations and giving you unrealistic market expectations.

Individual Property Characteristics

Redfin can’t assess the physical condition, unique features, or recent renovations of a property, such as a freshly landscaped garden, brand-new energy-efficient appliances, and a new coat of paint. 

These features can significantly increase the market value of a home, but can’t be captured in an automated, algorithm-based estimate.

Scott Coldwell is the Best Ocala Realtor to Find Your Home Value

Why Are Redfin Estimates So Low in Ocala, Florida?
Scott Coldwell

While Redfin Estimates provide a useful starting point, it’s crucial to consider their limitations. For a more accurate assessment, the best thing you can do is reach out to a local real estate expert. At Your Home Sold Guaranteed Realty - Coldwell Real Estate Services, Scott Coldwell and our team can easily help you find the market value of Ocala homes. 

Our track record of success is proven through our data– on average, we sell homes 48% faster and for 2.4% more money than our competitors. Plus, with our buyer and seller guarantees such as our Guaranteed Sale Program and Buyer Protection Plan, you can ensure a risk-free real estate experience.

Contact Scott Coldwell today at 352-290-3512, send a message to [javascript protected email address], or use the form on this page to learn more about working with our team. Buying or selling a home doesn’t have to be stressful when you work with the best realtor in Ocala and all of North Central Florida!

To Discuss Your Home Sale or Purchase, Call or Text Today and Start Packing!

Scott Coldwell $ 223 SW Broadway St, Ocala, FL 34471 352-290-3512
Scott Coldwell, Broker/Owner
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