Home Value Estimate tools are abundant on the internet. If you’re interested in selling your home you might start with such a tool to get an idea of what your home is worth. Or, maybe you’re just curious.
WARNING: A Home Value Estimate is NOT an Appraisal or CMA
Why do I say that? Having sold hundreds and hundreds of homes if there’s one thing I know it’s this. The home value estimates you find on the web can easily be off by 10 or 20%.
You could be leaving a lot of money on the table if you were to sell for that price. Or, you could be grossly overpricing your home. Either one of those scenarios spells disaster.
Another Serving of SPAM Please
If you’re interested in using one of the internet sites be warned….you’ll get spammed afterwards. Your information will be sold to real estate agents and you’ll be bombarded with calls.
If you like to be spammed go ahead and use Realtor.com, Zillow.com, Homes.com, eppraisal.com, Trulia.com, or any number of sites. Many banks offer home value estimates. Yep, you’ll get spammed with those also.
So, if you want an accurate expert opinion of the value of your home consider two options.
Option # 1 – Get an Appraisal
An appraisal is an expert opinion of value prepared by a licensed appraiser. An appraiser will visit your property, take measurements, pull up recent comparable sales, and come up with an opinion of value.
Banks require appraisals when Buyers are financing the property and the Buyer pays for it. But, if you, the owner, want to get a good idea of what your home is worth, you could hire an appraisal yourself.
When you sell, will your appraisal be used. No. The bank will want to hire their own appraiser.
Option # 2 – Get a CMA
A CMA is a Comparative Market Analysis prepared by your favorite real estate agent (hopefully, that’s me). The agent does almost exactly what the Appraiser does: visits your property, takes measurements if necessary, pulls recent comparable sales, and comes up with an opinion of value.
An extra step done by your agent is to help you position (price) the home to sell. An appraiser does not do that.
Of course, not all agents have the experience, skill, or pricing expertise to come up with true market value. Having sold hundreds and hundreds of home…ahem…I have that skill and expertise.
