Online value estimation sites are a good way to get an "IDEA" of what your home may be worth if you were to sell your home. You need to keep in mind that these estimates are based off of tax records and recent sales. If the tax records and sales databases are not up to date, then your value estimation could be off by a substantial amount. The reverse holds true with over valued estimates. These are tools for information purposes only and should be used only as such, and not used as a determination of actual value of your property.The only way to determine the value of a property is by using a licensed real estate appraiser. The value that the appraiser gives is based on their physical inspection of the property, as well as nearby comparable sales. For most home loans, an appraisal performed by a licensed appraiser is required in order to fund the loan.
A major component in calculating the value of your home lies in the condition of your home and the condition of the comparable homes being used to compare your home to. An online property value estimator can not take the condition of your home or comparable homes into consideration because it just gives you a simple estimate based on basic county sales information.
Online property value estimators are pretty good in some neighborhoods where enough data has been entered into their system and the homes are similar, like tract homes. They are not so good for estimating values for unique properties.
On the plus side, however, many are free, making them a great starting point.
Online estimators are estimations that give you an idea of what your property "could" be worth. The only way to obtain the accurate information you need is to have a licensed real estate appraiser evaluate your home.
Zillow.com is a recent newcomer to the online evaluation scene. While some homes may receive accurate values in areas where local sales data is public data it is not as accurate in other areas. The value provided may be invalid and incorrect by thousands or even tens of thousands of dollars. Contact First Security Financial Services, Inc. for help in finding a local reputable appraiser.
