Online home evaluations can be imprecise when determining a home’s value.

Homeowners often wonder about their home's value, and buyers question whether a house on the market is priced correctly. Both groups commonly use online home evaluations for insights. Are these tools accurate? Yes and no.

Online tools can provide a rough idea of a home's value, but they are usually imprecise. For instance, Zillow's Zestimate, a widely used home evaluation tool, can be up to 20% off by their standard. This discrepancy can result in a difference of tens of thousands of dollars.

Why do these online evaluations deviate so much? The main reason is that these tools take the average sales price in a particular zip code and create a per-square-foot price, then apply it to all homes in that area. These tools do not compare like-for-like homes.

For example, they may value a tri-level home the same as a single-level ranch or a two-story colonial. Online evaluations also overlook interior upgrades, like new flooring, paint, or appliances, all of which can add value that these tools can't capture.

“Online evaluations do not compare like-for-like homes.”

Another overlooked factor is discrepancies in tax records. If a home has a finished sunroom, basement, or third floor that has increased the square footage but isn't reflected in the tax records, this additional space won't be considered by an automated tool.

So, how do you ascertain your home's true market value? By asking a professional real estate agent who understands the market. A professional agent will consider your home's unique features and compare it to similar recently-sold homes in your neighborhood to provide a true market value, even if you're not planning to sell soon.

Contact us for a free, no-pressure home evaluation. Our team will equip you with all the necessary information to make an informed decision when you're ready, so call or email us anytime. Remember, it's not the market… it’s the marketing that makes the difference!