Other companies offer paid home value estimates, such as Attom Data, CoreLogic, Quantarium, and Black Knight. These companies typically promise greater accuracy and more data about a property than you would get with a free home value estimator. Bank of America is one of the few large banks offering a free home value estimator, but the bank’s size and mortgage experience don’t translate into more accurate home valuations. Typically, national AVMs are not a good representation of a home's actual value and have a large margin of error. The values generated by AVMs are based on automated computer modeling from public records and may not represent the true value of the home as they cannot take into account the nuances of our local market. A number of factors go into estimating the RealEstimate℠ valuation data, which can include specific characteristics of the home, market conditions and recent nearby sales.
Chase Bank’s home value estimator ranks as one of the worst we reviewed. Like PennyMac and other estimators, it frequently uses outdated comparable sales to estimate a home’s value. However, PennyMac is another home value website frequently using outdated comparable sales to determine a home’s estimated value. On our test property, seven out of 10 of its comparables sold more than seven months ago. PennyMac is one of the nation’s largest mortgage lenders, servicing more than $500 billion in loans in 2021. Its home value estimator is fast, free, and easy to use, and we found its property information accurate compared to our home’s tax records.
What is your home currently worth?
For over two decades, we've been a trusted resource for homebuyers and sellers. Now, we're bringing our commitment to transparency and trustworthy data to people, by providing them home values about specific properties. Your most accurate home value estimate will come from a local real estate pro. Knowing what your home is worth can help you decide when to sell and what your asking price should be.
This is not an official appraised value nor is it the value that Guaranteed Rate, Inc. will rely upon in making a determination of value or in making a lending decision. Guaranteed Rate, Inc. will rely upon the value as provided by a licensed appraiser contracted by the company. The actual appraised value of any property may be higher or lower than the estimated market value provided by The Home Valuation tool. All estimations are for informational and educational purposes only, and in no way is any of the data contained herein to be construed as financial, investment or legal advice. Changes in the market itself are a major contributing factor to fluctuation in home value.
Zillow (and Trulia) home value estimator
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.
Indeed, it’s hard to boil down years or decades of memories in a home to a number. It’s also hard to accept that your home is worth less than what you paid for it, or that you can’t just tack on the full dollar amount of the renovations you’ve made. On average, renovations will reap you only a 64% return on investment, although that varies based on the type of upgrades you’ve made.
Sell
For example, realtor.com’s home value estimator provides valuations from three different independent providers to ensure you have as much information as possible from a variety of sources. Zillow’s off-market property home values carry a median error rate of 6.9%, while Redfin’s is 7.67%. In other words, half of all off-market homes sell for within 6.9% of Zillow’s home value estimates and sell for within 7.67% of Redfin estimates, while half do not. Your home value estimate is based on sales price data gathered from public records. Estimated value can vary depending on location, current market conditions, data availability in a given area, and other factors.
Speaking with a local real estate agent who knows the market is another helpful source for determining the value of a specific home. Realtor home values are a superior option compared to Chase Bank’s, which often uses outdated or irrelevant comparable home sales data. Our analysis shows that Chase home values often fall short of other estimators. If your home value is flat-out wrong, you’re stuck with that inaccurate valuation.
Compare your homes to others in the area
A Verified Partner Agent from Rocket Homes℠ can provide you with a comparative market analysis . A CMA consolidates all the data from available comparables and gives you an estimate of what your home value should be. If you're planning to sell, the Redfin Estimate can give you an idea how much you'll get for your home. If you're house hunting, the Estimate can predict the final sale price for listings you're interested in.
A house listed with an agent will have had a CMA done, which is far more accurate than a home value estimator. Agents know this and won’t be swayed by buyers trying to get a lower price because of what an online calculator says. But don’t rely too much on a home value estimator when making an offer. Even if a home value estimator claims that a house is worth less than what it’s listed as, chances are that the estimator is wrong — not the list price.
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.
You can ask an agent for a CMA without actually having to commit to using that agent to sell your house. Ownerly also has received negative online reviews, with customers reporting getting charged the $29.99/mo fee even after canceling a subscription during the 7-day trial. Like other home value websites, Bank of America likely doesn’t factor in your home’s renovations or upgrades. We plugged several single-family properties into Bank of America’s website and received home value estimates within seconds.
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.
We considered several factors when assigning a grade to each home value estimator — most importantly, the error rates and geographical coverage. Because only half of the home value estimators publish their error rates, we lowered the scores of those that did not. In most cases, an appraisal is done after a buyer has already made an offer on your home.
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The mortgage lender typically requests one to ensure that the property isn’t overpriced and that the lender is giving a fair amount for the mortgage. So the appraisal is more about protecting the lender’s interests, not yours. They don’t have much to do with getting you the best list price for your home. Your realtor will use houses that are far more comparable to yours — and therefore get you a more accurate home value estimate than an algorithm ever could.
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