Are you considering selling your home? The first thing you need to know is how to calculate your home’s value. Figuring out the value of your home can help you better estimate how much money you’ll make through selling, which might determine the price of your new home.
Figuring out the overall worth of your home can be tricky on your own, but it is possible to get a good estimate before you start the selling process.
There are a variety of online tools you can take advantage of to find out the average value of your home. However, just because these tools exist, doesn’t mean they’re as accurate as they seem.
Want a more accurate (and free) home valuation? Connect with a top-rated Clever Partner Agent near you — learn more here.
The Trouble with Home Estimate Tools
Home estimate tools are popular because they’re so easy to use and don’t require much more than a few clicks to run. However, they aren’t entirely accurate and should therefore only be used as a starting point in the home-selling process.
Many popular estimate tools are fueled by sales of similar homes or data that might be out of date. Still, getting a starting estimate can be helpful before plunging into the selling process.
If you’d like to check out an online estimate tool, here are five of the best to try.
Arguably the most popular site for seeking new homes, Zillow allows users to figure out the “Zestimate” of their home. Zillow uses machine-learning models to help calculate the approximate worth of your home. It’s estimated that the median error rate for Zillow’s Zestimates is 4.3%. This means that about half of the Zestimates on Zillow fall within 4.3% of the home’s actual value.
Since Zillow doesn’t have all market data available within its system, there is always room for error. Some homes, for instance, don’t list square footage or perhaps list the wrong square footage, making it harder to compare like homes to better predict property values.
The tool Redfin’s home estimator uses will show you comps used to help find the right value for your home. Similar to Zillow’s estimator, Redfin uses all available public information to help figure out your home’s real value, but their service only covers 72.5 million homes so far. The service, however, only has a median error rate of 1.71% for homes on the market, while their error rate for those off the market is 72.5%.
Redfin also allows homeowners to update details on their property to ensure the price provided is as accurate as possible.
3. Bank of America
This online home estimator tool can give you a good range in which you can expect your home’s value to lie. Bank of America’s online pricing tool arrives at its value range by viewing comparable homes and the prices they sold for. It will assess your property to determine a likely value range.
This website uses a tool called “My Home” to allow you to view and monitor different information about your home. Homeowners can take advantage of this tool to find out details about their property (and verify all details are correct), find the home’s approximate value, and track the property’s value over time on a line graph.
Chase’s online home estimate tool has a lot of options homeowners can use to arrive at as close of an estimate as possible. This software uses information about local properties recently sold to help figure out your home’s worth. In addition, you can update information about the home (such as adding in that inground pool you built last summer) and even calculate your home’s worth with enhancement you might be considering.
Next Steps: Running a Comparative Market Analysis
Like we mentioned, an online estimator can provide a great baseline expectation for the sale of your home, but the only way to arrive at the correct value and listing price is by running a comparative market analysis, or CMA.
A CMA is typically provided by an agent in order to ensure your home is listed at a fair price, that will sell. Your CMA number may be very different than your estimated value, so it’s an important step to take.
Clever agents will run a comparative market analysis on your home for free, so you have a good idea of what number your home might sell for. Not only will Clever agents provide a free CMA, they’ll also extend significant commission discounts during the selling process.
To learn more about how to connect with an experienced full-service agent for a fraction of the cost, and get your free CMA, connect with Clever today.