One home. Six estimates. Which number should you believe?
Wondering what your home is worth? You can enter your address into several websites and get an estimated value in seconds.
But check a few different websites, and you may get very different numbers.
These tools are called Automated Valuation Models (AVMs). They use property records, recent sales, market information, and computer models to estimate home values.
They're useful, but they don't always tell the whole story.
Six Places to Check Your Home's Value for Free
Want to see how the estimates compare? Try entering your address into these tools.
SoldByCaleb Home Value Estimator
Start with my free home value tool, powered by Cloud CMA.
Provides an estimated value, value history, and information about nearby properties.
Uses property information and market data to calculate an estimated value.
Offers home value information and may display estimates from multiple independent valuation providers.
Provides an estimated property value and information about nearby comparable sales.
Bank of America Home Value Estimator
Offers a property value estimate based on available real estate information.
These services are generally free, although registration or contact information may be required. Not every service provides an estimate for every property.
Try this: Check your home on three or more websites. Write down the estimates. How far apart are they?
Why Do the Estimates Differ?
Each company uses its own data, calculations, and valuation methods.
Most consider information such as:
Location and lot size
Square footage
Bedrooms and bathrooms
Previous sales
Comparable properties
Local market trends
Some also incorporate listing photos, descriptions, and homeowner-provided updates.
But the information available to each company may be incomplete or outdated.
Same House on Paper. Different Value.
Imagine two homes in Canton Township.
Both have:
3 bedrooms and 2 bathrooms
1,800 square feet
Similar lot sizes
An online estimated value of $350,000
- Newer roof
- Updated kitchen
- Newer furnace and A/C
- Well maintained
- Functional floor plan
- Aging roof
- Original kitchen
- Older furnace and A/C
- Deferred maintenance
- Awkward floor plan
Would you pay the same price for both homes?
Probably not.
Buyers consider the condition, improvements, layout, and overall appeal of a property.
An AVM may not fully recognize those differences.
These homes and values are hypothetical examples.
How Accurate Are Online Estimates?
Accuracy varies by company, property, and market.
For example, Zillow publishes nationwide median error rates for its Zestimate.
Its reported figures have been approximately:
1.8% for homes listed for sale
7.2% for homes not currently listed
For a $400,000 home, 7.2% represents $28,800.
That doesn't mean your estimate is necessarily off by that amount. It's an illustration of the reported median percentage error, not a prediction for your property.
A median error means half of the measured estimates have a smaller percentage error and half have a larger one.
These are national figures, not Southeast Michigan statistics, and they shouldn't be applied to every AVM.
You can review Zillow's published accuracy information for its latest figures.
What Really Determines Your Home's Value?
Three things deserve particular attention:
Recent Sales: What comparable homes actually sold for.
Current Competition: What buyers can purchase instead of your property.
Property Differences: Condition, improvements, layout, location, and features.
For more information, explore these SoldByCaleb Real Estate Guides:
Each explains something about a property that may influence its market value or how buyers evaluate it.
What Is Your Home Really Worth?
Online estimates are a great place to begin, but they aren't the same as an appraisal or a property-specific market evaluation.
If you're considering selling, a comparative market analysis can help you understand how your home compares with recent sales and current listings.
Start with the technology. Then look at the actual property and local market.
Try My Free Home Value Estimator
Or visit my Seller Resources to learn more about preparing your home for sale.