Are Online Home Value Estimates Accurate?
As you consider selling your home, the natural first step you might take is checking out an online value estimate. Knowing the value of your home will help you make vital decisions about whether now is the right time to sell and how much you can expect to have in equity to leverage toward your next home purchase. Here's how to know if your online home value estimate is accurate.
Of course, we are always available to provide an expert, up to date estimate on the value of your home. To learn more about selling your home or find out what it's worth, contact us any time.
Why the Value of Your Home Matters
First, let's talk about why knowing the value of your home matters in the first place. American homeowners currently hold a record breaking amount of equity, with an average of $300,000 in equity across all American markets. This has many homeowners wondering what their exact equity is and how they might be able to leverage it toward their goals.
The equity you have in your home is found through a simple equation: the value of your home minus the amount you owe on your mortgage (or mortgages if you have more than one). The latter is easy to find on your mortgage loan documents, but you won't be able to find your answer without knowing the value of your home today. This is why many people turn to an online estimator.
Is an Online Home Value Estimate Accurate?
Is the home value estimate you see online accurate? The short answer is maybe. These online tools might give you an idea, but ultimately they work from an automated system that is limited to the information available online. They cannot take into account any renovations or damage that has taken place since the last listing, and also might not have relevant neighborhood information.
Online tools like Zillow's Zestimate use the information available from whenever the property was previously listed as well as anything that is public record to automate the value of the home. These tools can also take into account what homes with a similar square footage and number or bedrooms and bathrooms have sold for recently in the area.
The bottom line is: an online home value estimate might give you a good ballpark idea, but you should not count on it as the price for which you will be able to sell your home.
What is the Most Accurate way to Find Your Home's Value?
There must be a better way, then, right? There is. This is an area was a professional that is actively working in your area is going to trump the value of artificial intelligence. A real estate professional who knows your community will be able to look at your home, making note of the factors the online tool factors in while also considering up to the minute market conditions, the condition of the home, features of your home that are particularly desirable in your area, and more.
The best way to find out what your home is worth is to ask your real estate professional to review the property and provide their expert option. Contact us any time for help doing just that!