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For further information on your home’s current market value, connect with a real estate agent. Its Zestimate has a national median error rate of 6.9% for off-market homes and 1.9% for active listings, making it slightly more accurate than Redfin. Our analysis found that several estimators, including Chase and Zillow, use outdated comparable home sales to determine their estimates, while others use active listings. However, Realtor.com still falls well short of a home value from a professional real estate agent or appraiser. There’s no way to view which comparable sales it chooses to determine your home value, and its estimates likely don’t factor in your home’s renovations or upgrades. This home valuation cannot replace an appraisal or similar report rendered by a licensed, professional appraiser or a Comparative Market Analysis conducted by a real estate professional.
Unfortunately, no home value estimator publicizes how far back they go when looking for comparable properties, so there’s no way to know for sure which estimator works best in a hot market. As you can see, the difference in estimates was huge — over $53,000 for our city property! That just goes to show that online home value estimates are not reliable for pricing your home properly. A common issue with estimator tools is that their assessments are based on how much “similar” properties have sold for near you.
Redfin home value estimator
Zillow Zestimates are among the most accurate home values in the industry and slightly more accurate than Redfin values. Collateral Analytics provided a much higher home value estimate ($222,548) for our test property compared to Core Logic ($192,600), with no explanation. Unlike many of its competitors that provide a single home value, Realtor.com provides its users with three home value estimates. Each estimator uses a different algorithm and pulls property information from various sources to determine home values.
A real estate agent can get you a far more accurate CMA for free and with no obligation. However, Redfin’s estimator is useful compared to many others we tested. Its estimator is free, fast, and easy to use, and its home values are updated frequently (daily for active listings and weekly for off-market homes). Like other home value estimators, recent upgrades or renovations likely don’t impact your valuation (unless they’ve been reported on your property’s tax records). In either case, having an accurate grasp of your home’s estimated market value can come in handy.
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Home value, or current market value, is the amount of money your house would likely sell for if it went on the market today. Our Verified Partner Agents are local experts who earn an average of 4.8/5 stars from buyers and sellers just like you. When you're ready for a professional home-value assessment, a Redfin real estate agent can evaluate your home in person and give you pricing recommendations based on its unique characteristics.
You should always consult a local real estate agent for a comprehensive market analysis to determine your home's value. When your real estate agent comes up with a comparative market analysis , they mainly rely on what are called “comps.” These are houses that have sold near your house that are comparable to yours. But for all other investors, you’ll want to turn to a real estate agent. They’ll always be able to provide a much more accurate estimate of a home’s worth than an online home value estimator will.
Average Time On Market
Your agent can also see pictures of homes that are for sale or have sold in the past. These pictures give your agent a much better idea of the condition of the home, which is something that makes a huge difference in terms of list price. Algorithms struggle with determining the condition of a home, which is a big reason why they’re often off by large margins. Your realtor will handpick different properties that are most similar to yours, based not just on quantitative measures, but on qualitative measures that an algorithm can’t compute. For example, an agent will take into account whether your house has a desirable view or if it’s on a busy street — things that most algorithms struggle to put a dollar value on.
Redfin has complete and direct access to multiple listing services , the databases that real estate agents use to list properties. We use MLS data on recently sold homes in your area to calculate your property's current market value. According to an independent study of on-market homes, the Redfin Estimate is the most accurate among leading automated home-value tools. We provide the most accurate value of a home for sale—more than twice as likely to be within 3% of the home's selling price as other top online home-value estimators. Like other estimates, this is not a formal appraisal or substitute for the in-person expertise of a real estate agent or professional appraiser.
Why your home value estimate may be even less accurate
Finally, Chase home values can’t be saved, and users have no option to add home renovations or improvements. However, we found no evidence that Realtor.com’s value estimates are more precise than other options. Zillow Group is committed to ensuring digital accessibility for individuals with disabilities. If you wish to report an issue or seek an accommodation, please let us know. “Sellers always think that their home is worth more than it is, because of their personal attachment,” says Dossman.
Zillow Zestimates rely on the MLS, tax records, and user-submitted information to complete its Zestimates, which are frequently inaccurate. So if you put your off-market home into Zestimate, there’s a 50/50 chance that the home value will be WORSE than Zestimate’s 6.9% error rate. If you’re thinking about selling, your home is probably still off of the market, so the less accurate one (6.9%) applies to you.
Sometimes Zillow — and other home value websites — just doesn’t have enough data about a property to estimate its value. For example, one home value estimator may place more weight on a renovated kitchen than another one. Or one estimator may only use sales data going back one year, while another uses sales data going back two years. Each home value estimator uses its own algorithm to decide how much a home is actually worth. These algorithms weigh different aspects of a property differently, which results in different home values.
Our test property has a valuation of $192,600, $194,465, and $222,548, or an average value of $203,204. We tested its home value tool, comparing it to other top home value websites, including Zillow, Redfin, and Bank of America.
These differences begin to snowball, resulting in differences in home value estimates that can run in the tens or even hundreds of thousands of dollars. However, while each of these projects will typically add tens of thousands of dollars to your home’s value, they are also major undertakings, both in terms of time and cost. But if you’re not ready to meet with an agent and just want a quick ballpark home value estimate, then a home value website is a better starting point.
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