How Reliable Are Online Home Value Estimates?

Palm Springs Real Estate Podcast with Will Cook

Online home value estimators can’t always be trusted. There are three reasons you should take their information with a grain of salt.

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

Online home value estimates might not be as reliable as you think. There are actually three reasons why you need to be careful when using them to determine value.

First of all, online home value calculators are based on a formula. The algorithms used to create a value for a home are generally based on a specific set of factors such as the square footage and prior sales of similar homes in the neighborhood. While that can be a good starting point, homes are imperfect, and there is no human interaction with the property when the value is being assessed.

Second, online estimates miss the details of your home. As noted, these tools can’t tell how lived in your home is. Online values won’t take into account if a home is covered in 1950s wallpaper or used to be a meth lab. On the flip side, they also don’t take into account any recent renovations or upgrades that may have been done to the home. The list price you would get from an online estimator would not include any value for amenities or the condition of the home.

Finally, the online estimators are only guidelines. These estimates can give consumers false hope sometimes, so you need to keep in mind that you won’t get the true value of your home online. You should use the Internet to do your homework, but don’t get attached to the values or list prices given for your home or estimates for potential homes you may want to buy.

“

The best way to find your home’s value
is to contact a real estate agent.

”

If you are thinking about selling your house, you really need to consult a real estate agent. A real estate agent will come to your home and let you know exactly what affects your home’s value. They can also get more reliable comparable sales to ensure the value they give you for your home is as accurate as possible.

If you have any other questions, please feel free to give me a call or send me an email. I look forward to hearing from you!