You might be about to make a significant financial choice about your home. Maybe you’re about to sell it because things have changed a lot in your family. Or, you could refinance your home to get a better rate on your mortgage. So how do you start?
One good place to start is to find out how much your home is worth. If you want to sell your home, a real estate agent can usually give you this information. If you are refinancing, a trained appraiser will give you this information.
But if you want to know, “How much is my house worth? You don’t have to talk to one of these professionals to get an estimate. You can start by using an online tool to find out how much your property is worth. Unfortunately, not all sites that estimate the value of a house give the same numbers. This guide will look at some of the best sites you can trust.
How to Choose the Best Home Value Estimator
Estimators of the value of a home are not all the same. Each site does a valuation using a different set of criteria and a different algorithm. When trying to answer the question, “How much is my house worth?” accuracy is critical, but there are a few other essential things to keep in mind.
Estimate Purpose
When selling or buying a home, getting a loan, or refinancing are some of the most common times for a homeowner to use a home value estimator site. Home value estimators can give estimates for homes that are for sale or not for sale. Some estimators will only tell you how much a home is worth, while others will tell you more about it, like how big it is and how many rooms it has.
Market Value vs. Appraised Value
When using sites that estimate the value of a home, keep in mind that the values they give are not market values. The market value of a house is how much it’s worth when it’s put on the market. It’s the price a buyer will pay for a person’s property based on how much they think it’s worth. This value could be more or less than what the market says it is worth. Online home valuation tools provide estimates that are not the same as appraisals. The appraised value of a home is based on several things, including how much other homes in the area have sold for recently. Sites that try to figure out how much a house is worth may look at the market value, the appraised value, and other factors. Still, the prices on these sites are just estimates that could change based on several factors.
Factors in Determining Home Value
So how do these sites figure out how much a house is worth? Each site gets its information from different places. The Multiple Listing Service (MLS), county records, and similar homes in the area are some of these sources.
Getting help from a real estate agent who will do a comparative market analysis is another way to determine how much a house is worth. This analysis is based on recent sales of other homes in the same area. In order to get an accurate estimate of a property’s value, another option is to employ a professional appraiser. An appraiser will charge you a fee for a much more hands-on home evaluation. Most of the time, an appraisal will cost between $300 and $400. But it can cost more than $1,000 for much bigger properties. Since these sites are free, they can be an excellent first step before paying for an appraiser’s services. Also, read Best HVAC Services 2023.
Accuracy and Median Error Rate
There are often problems with how accurate these sites are. There can be a discrepancy of up to 10 percent between online valuations and actual sales prices, depending on whether or not the property in question is actually for sale. Estimates will be more accurate for homes that are for sale or have recently been sold or for homes that have recently been added to the public record. Recent changes, like renovations, may not be considered in the valuation, which is a shame. It won’t be considered if you’ve done a major renovation, like adding a bedroom or bathroom but still need to update the public records. When users type in their addresses, these differences could lead them astray. Sometimes, it’s a good idea to use both a home value estimator and a remodeling estimator to figure out how much a home is worth.
Update Frequency
When using a site to estimate the value of your home, keep in mind how often the site updates its information. A property’s value may go up over time, especially if there have been recent improvements or significant changes in the area. A home could also lose value if it is old, has bad curb appeal, or has a low property tax value. Services with a lot of traffic and a good reputation that use strong listing sites will usually update more often. These sites may show the last time they were updated. Depending on its algorithms, a site that estimates the value of a home may update once a day, once a week, once a month, or at other times.
Privacy
Some information about a house is available to the public, so a user can put in any address and find out about it. The results may show how much the house is worth and other essential facts about it. But if a user wants to know a lot about a particular property, this information is usually unavailable to the public. Users can see this information if they claim a property and set up an account on the site. With an active account, the user can log in and change the data already there. This gives much more accurate results.
Additional Tools
A property valuation tool is just one service provided by some websites. Users can buy and sell houses on some websites. In some, you can find dictionaries devoted to credit cards, mortgages, and schooling. If you are a homeowner thinking about renting out your property, there are websites that can help you with management and promotion. Users may be encouraged to consider additional services and/or goods after using the site’s various home value estimators.
Best Home Value Estimator Sites
The following websites will give you some of the most accurate estimates of your home’s worth.
1) Zillow
Why it made a list: Zillow is one of the most accurate site estimators because it has an extensive database with many listings and algorithms that are constantly improving.
According to Zillow, it is among the most visited real estate websites in the US. Its popularity shouldn’t come as a surprise given the high quality of the property value estimator it provides. Properties currently on the market have a median error rate of 1.9%, while homes that are not for sale have a median error rate of 6.9%. With the largest database and an ever-evolving algorithm, Zillow’s estimates, or “Zestimates,” are among the most reliable in the industry. Zillow also has helpful tools for people who want to sell their homes. The only problem is that the interface for homeowners can be hard to use because it has a lot of information. But it gives homeowners many valuable tools, like home equity estimates and sales proceeds, that can be changed. A tool for comparing home values lets users choose specific homes in the area and compare their specs and prices immediately. Users can be sure that this platform will give them accurate home values.
Specs
- Median error rate: 1.9% on-market, 6.9% off-market
- Off-market 4 bed, three bath in NJ: $1,190,700 ($1,100,000–$1,310,000)
- Off-market 4 bed, three bath in MD: $707,600 ($672,000–$743,000)
- On-market 3 bed, three bath in OH: $300,001
- On-market 3 bed, one bath in CA: $598,200
Pros
- The median error rate for homes for sale is only 1.9%.
- a proprietary algorithm that changes over time and an extensive listing database
- Home equity estimate and adjustable sales proceeds are among the features.
- Compare the prices of homes.
Cons
- Interfaces can be hard to use because they have a lot of information.
2) Redfin
Redfin gives new information about homes daily, which is why it made a list. Due to its nature as a real estate agency, it has access to accurate data regarding available homes.
Redfin is a Seattle-based, full-service real estate brokerage. With the guidance of one of their seasoned brokers, it facilitates the sale of homework for those considering such a move. The median mistake rate is 2.24 percent for homes currently for sale and 6.74 percent for those that are not. Assume further that the user is pleased with the estimate. In such a scenario, they can start the selling process by contacting a Redfin agent, who will provide them with a free CMA (comparative market analysis) to help them choose an appropriate asking price for their home. The site’s user-friendliness is matched by the accessibility of its latest feature: a map that displays the locations of recently listed homes, allowing viewers to quickly gauge market activity. Redfin is still among the top sites for assessing a home’s value, and their estimator is among the most accurate ones available. Also, read Best Indoor Security Cameras.
Specs
- Median error rate: 2.24% on-market, 6.74% off-market
- Off-market 4 bed, three bath in NJ: $1,288,670
- Off-market 4 bed, three bath in MD: $765,882
- On-market 3 bed, three bath in OH: $300,384
- On-market 3 bed, one bath in CA: $653,265
Pros
- The median error rate for off-market homes is only 6.74 percent, which is pretty decent.
- Maps are used to show recent home listings.
- Users can ask a Redfin agent for a free, in-depth analysis.
Cons
- Homes on the market tend to have higher prices than the average.
3) Realtor
Realtor.com has the most tools for homeowners, and some of them let them keep track of local trends. This makes it an excellent site for people trying to sell their homes.
Realtor.com is well-known for its reliable information about homes for sale and for its platform that helps property managers stay organized. There’s also a handy home value estimator that pulls data from impartial automated appraisals. Users can get a general idea of how much their property is worth or use the “claim your home” feature to get more specific information about their property. The median listing price and median number of days on the market are provided. This can help a homeowner keep track of local trends and make better decisions about selling their home. This information is only available to the owner of a home, but keeping it private helps protect people’s privacy. Some of the estimates for homes on the market were lower than average, but overall, Realtor.com is an excellent resource with tools that homeowners can only find where they can find.
Specs
- Median error rate: N/A
- Off-market 4 bed, three bath in NJ: $1,000,000
- Off-market 4 bed, three bath in MD: $666,500
- On-market 3 bed, three bath in OH: $140,400
- On-market 3 bed, one bath in CA: $577,900
Pros
- The site uses automated prices from several third parties
- The median listing price, the number of days on the market, and other tools help
- homeowners to keep an eye on local trends
- Homeowners can look at how the local market is doing.
Cons
- Some home prices on the market can be much lower than average.
- Off-market information about a property is only available to the owner after the listing is claimed.
4) Chase
Chase lets site visitors use an estimate of their home to find out if they are eligible for loans. This is helpful for homeowners who want to get a loan for home improvements or a second mortgage.
Chase has made a name for itself as one of the most trusted banks. As a mortgage lender, it has a tool to help people figure out how much their home is worth. Its platform also lets people change information about their home, such as the number of bedrooms and bathrooms, which makes the valuation much more accurate. Some properties on the market may not have estimates, especially if they are newer, and the available estimates may be lower than those from other home value estimator sites. But Chase’s site is the best for homeowners who want to find out how much their home is worth and get pre-approved for loans in one place. Also, read Best Memory Foam Mattresses.
Specs
- Median error rate: N/A
- Off-market 4 bed, three bath in NJ: $976,000
- Off-market 4 bed, three bath in NJ: $976,000
- On-market 3 bed, three bath in OH: N/A
- On-market 3 bed, one bath in CA: $571,700
Pros
- Users can change the information about their home to get a more accurate valuation.
- Chase lets people use estimate information to apply for prequalification for a loan.
Cons
- Valuation could be low.
- Some properties on the market may make less than expected.
5) Eppraisal
Not only does Eppraisal show users their estimates, which are based on reliable public data, but it also lets users see the estimates of other top competitor sites, which is helpful for a quick comparison.
With its automated home valuation model, Eppraisal is a leader in its field. Eppraisal’s estimates are based on public information and recent sales of similar properties, called “comps.” The Zestimate from Zillow, as well as those from competing sites, can be compared side by side. The most recent mortgage and loan rates from a variety of financial institutions are also included. For some houses on the market, especially those that are relatively new, the estimation process could take longer.. The website for Eppraisal can be hard to use, and users are asked to put in their full address (most other sites have an auto-fill function). But it has a lot of resources for homeowners who want to buy, sell, or get a loan, and users can sign up and access exclusive member content.
Specs
- Median error rate: N/A
- Off-market 4 bed, three bath in NJ: $1,140,000–$1,180,000
- Off-market 4 bed, three bath in MD: $780,000–$812,000
- On-market 3 bed, three bath in OH: N/A
- On-market 3 bed, one bath in CA: $597,000–$609,000
Pros
- Comparison of Eppraisal estimate and Zillow Zestimate on the same page
- Current mortgage and loan rates from multiple lenders are available
Cons
- Some properties on the market may need help to get estimates.
- The interface can be hard to use.
Our Verdict
We chose Zillow as the best choice because it has a database of listings that gives estimates with a median error rate of 1.9% on-market and 6.9% off-market. Redfin is an excellent second choice. It has a median error rate of 2.24 percent for homes on the market and a 6.74 percent error rate for homes not on the market. It is also easy to get a free comprehensive analysis.
