6 Ways to Get a Real Estate Price Estimate for Your House
Keeping tabs on your home’s value is good practice. Refer to this article to know how to get a reliable real estate price estimate.
As a homeowner, you may be wondering if the current value of your home may be more than what you paid for it — and whether you’re in a good position to tap into that growing equity for home repairs, to refinance into a lower mortgage payment or sell your home for a nice profit. Whatever your goal, the first step is to get an accurate real estate house price estimate.
Here are six ways to determine that estimate — as well as the pros and cons of each.
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1. Use a reputable online home value estimator
An automated valuation model (AVM) provides an instant value estimate by analyzing real estate transactions and home data on existing properties. Using data collected from property transfers, tax assessments, and other public records, these online platforms compare the value of similar properties to estimate a home’s worth.
It’s important to keep in mind that while online assessments can give you a ballpark estimate (and present it fast), these online tools won’t be able to account for recent home upgrades — such as a newly renovated kitchen, a recently installed pool, or new windows.
Because of this, online assessment tools have their limitations. Companies like Zillow and Redfin have reported that their AVM median error rates are approximately 2% for homes that are on the market. For off-market homes, the error rate is reported to be around 7%.
On-market homes tend to have more up-to-date information so AVMs can produce a more accurate value estimate.
