Online Home Valuation vs Fair Market Value

Question: Can an online home valuation tell you what your home is really worth? Not really…

More likely than not, it’s wrong and could even be extremely wrong. Here’s the thing you need to keep in mind… the real estate market is hyper-local.

What’s happening with home values in Seattle, LA, New York & Chicago is interesting but does not necessarily paint you a picture of what your home is worth in the local market. You have to dig deeper.

How Does an Online Home Valuation Work?

This is the age of information. Public records are everywhere – who owns the house, where are the tax bills mailed to, property taxes, what’s the square footage, what’s the lot size…  Some even have access to old MLS information – which is not always accurate or up to date.

All of this information is available online. Home Valuations site Algorithms harvest the info and calculate the price of a home. But, is it accurate?

Not usually…

Because real estate is hyper -local to cities, towns, neighborhoods – more information about the actual condition of the home and surrounding area is needed to attach a fair market value.

Important Home Value Information

In our area, an appraiser will physically visit your home, look at the neighborhood or area, do a visual of the roof, electrical panel, attic and crawl/basement. They will measure the building square footage, and walk through the home noting updates, number of beds and baths, actual living space (square feet) and more so they can compare apples to apples in their report.

Appraisers use public information, too.

Hyper-Local Home Valuation is BEST!

Outside of paying for an appraisal, the best way to find out the fair market value of your home is to call a Realtor!

We are trained to do a Comparable Market Analysis (CMA) using most of the same tools an appraiser will use. We know our markets, intimately. It’s where we work, play, raise our families and live.

In a Seller’s Market like we have been experiencing the last few months, we have had sellers try to push the envelope and try to get more than fair market value for their home.

What we have found consistently is, if you price your home right, with the advice of a Realtor, it sells quickly and for value and maybe even more.

If you overprice your home, it will sit on the market and will likely need price reductions. That’s not what anyone wants. We want to sell your home quickly and for the highest price the market will bear. Sound good?

Relying on partial information from online valuation sites is risky. Typically, your home is one of  your most valuable assets. Don’t leave it to chance. You could be leaving money on the table, or you could be overpricing. Neither is a good option.

Call The Real Estate Pros team and we will be happy to get you a reliable, fair market valuation of your home so you can make the best decision for you and/or your family! Call or Text us today at 317-572-5589. One of our knowledgeable agents will be happy to assist you!

Or, you can fill out this form and we’ll call you! Home Valuation Form