How to Determine Your Home’s Market Value

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If you search online for ways to determine the market value of your home, you’ll encounter all kinds of tools. Not all of these tools are created equal and figuring out the market value of your home can certainly be tricky. Here are a few ways you can try to figure out the market value of your home.

Online Home Value Estimators

Home value estimators may seem like a good idea, but they are not always accurate. Some will give you the value based on a refinance loan, while others may give you an estimated value based on selling your home. However, these estimators are certainly not the best approach.

Larger Real Estate Websites

Of course, you can turn to some of the big real estate sites, such as Zillow. They have a tool called the Zestimator, which is supposed to give you an estimate of the value of your home. The estimate comes from a proprietary formula they use, but many have stated how inaccurate this tool is when it comes to the real market value of a home.

Comparative Market Analysis

If you truly want to know the market value of your home, it’s best to get a comparative market analysis done by a qualified real estate agent. The Comparative Market Analysis or CMA uses sold property records to ensure the home’s market value is as accurate as possible.

When contacting a real estate agent for a CMA, you’ll end up with an accurate market value instead of a guess from an automated tool. An actual human being will perform the searches and will assess the differences between the sold properties found and your property. Once they have looked at the sold properties, they can make adjustments for features your home has that the sold homes don’t have.

While not all CMAs are not created equal, they are often far more accurate than using online estimation tools. The CMA accuracy will completely depend on the realtor you choose and their process. If you decide to get a CMA from multiple agents, it’s important to understand the one giving you the highest value may not be the most accurate.

It’s best to have an accurate CMA done and not just one providing you with a value you like. IF you choose to list your property with an agent giving you an inflated market value, it could take longer to sell your home and you could actually end up selling it for less than it’s worth.

When you want to determine the market value of your home, don’t trust the online tools. They are guessing, at best. Instead, contact a local real estate agent and have a complete comparative market analysis done.

If you want to know the real market value of your home, contact me today for your personalized CMA. 704-650-5707

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