How reliable are home value estimates online?

By Erik J. Martin CTW Features

Curious how much your home can probably fetch today? The answer is likely just a few keystrokes or finger taps away. That’s because sites like Zillow, Trulia, Realtor.com, Redfin, and others provide fast and free online home valuations indicating what your property is probably worth currently.

But can these sites and their estimates be trusted?

And to what extent can these snapshot valuations be useful?

Ben Wagner, a real estate investor and house flipper in New York City, often visits and trusts these and other sites because he says they provide relatively accurate estimates of home values based on data from public records and recent real estate transactions.

“Redfin is a great option for those looking to buy or sell a home, as it offers detailed information on properties – including prices, photos, and reviews,” he says. “Zillow is another popular option, as it provides home value estimates and market information for homes all over the country. Realtor.com also shows detailed info on home values and recent sales as well as estimated rent prices for specific homes. And Trulia is an excellent choice for those looking to buy or sell, as it offers comprehensive information on properties, including market trends and data.”

Knowing the current estimated value of your home can position you to make more informed decisions about financial planning. It can help you better decide whether or not to refinance your mortgage or take out a home equity loan, for instance.

“It can also help you determine how much home insurance coverage you need, and it can provide you with leverage in negotiations if you are looking to make improvements or repairs to your home,” adds Wagner. sites also don’t consider more specific factors that can impact your home’s worth, “such as the area’s local economy or the specific location of your home.”

Jasen Edwards, chair of the Agent Editorial Board, explains that sites like Zillow offer multiple benefits beyond an instant valuation of your home.

“These websites also make it easy to compare your home’s value with those of other homes in your area. You don’t have to meet with a real estate agent or appraiser, either” says Edwards.

However, online valuation sites can provide misleading information, cautions Chuck Vander Stelt, a Realtor in Valparaiso, Indiana with Listing Leaders.

If you disagree with an online valuation tool’s estimate of your home’s value, you should be able to supply helpful fresh data to the site.

“The algorithms they use cannot account for subjective factors, including things like attractive paint colors, aspirational decor aesthetic, or having more desired white trim and doors versus natural wood. Instant online home valuations don’t necessarily incorporate all the features found in your home, therefore inaccurate results are relatively frequent,” Vander Stelt. “That’s why these tools should only be treated as a guidepost. Your home’s true value is likely within 10%, up or down, of the value provided by an instant online valuation tool.”

Edwards adds that these

“With Zillow, for instance, you can update its Zestimate to reflect recent renovations or other changes to your home’s property value. You can submit a ‘Home Details’ update to Zillow, which includes information about recent renovations, additions, or other changes to your home. You can also request a ‘Zestimate Recalculation,’ which will recalculate your home’s estimated value based on the new information,” suggests Edwards. While Trulia and its rivals are quick, convenient, and gratis, they’re still no substitute for two tried-andtrue methods for obtaining an accurate home valuation, the experts agree.

“Enlist a real estate agent to conduct a comparative market analysis of your home, or hire a professional home appraiser,” recommends Nicole Beauchamp, a licensed associate real estate broker with Engel & Volkers in New York City.

“These remain your two best bets to get an accurate and timely opinion of the value of your home.”