If you are like most people you are sometimes curious about the value of your home. This information can be helpful if you are wanting to make an informed decision about financial planning or just want to make sure your insurance coverage is adequate. But, how accurate are the home value estimates that you can get online? Sites like Zillow, Trulia, Realtor.com, Redfin all make it possible to get your home value with just a few clicks. But can you trust the value that they give you? Good question!
Are they accurate?
These websites make it possible for you to compare your home’s value with those of other homes in your neighborhood. This can help you decide if it would be a good time to do some updating or make home improvements. All of this without having to meet with a real estate agent. However, all of this information can provide you with misleading information. The algorithms that are used by these companies cannot account for subjective factors. What is a subjective factor? Subjective factors include having attractive paint, new flooring, upgraded appliances, white trim rather than natural wood. These online tools also do not take into account special features, improvements or upgrades that are in your home. For the reasons listed, these websites are best used for fun and a guide post only. Your home’s true value is likely within ten percent up or down from the value that is provided by an online evaluation tool.
What they leave out
Only home value websites do not take into account supply and demand, the local economy and the specific location of your home. The best way to get the “real” value of your home is to do one of two things. One is to hire a professional home appraiser or the other is to call a real estate agent. The real estate agent will complete a market analysis for you on your home and let you know what they feel your home would sell for in today’s market. This market analysis will take into account the market, the home’s improvements. upgrades and the location of the home. The report is prepare at no cost to you. An appraiser can do the same thing, however they will charge between $500 and $1,000 for their service.
Online home value estimates can be used as a fun tool to get an general idea of what your home is worth, but if you need accurate information, please call a real estate agent.