It feels so simple to type your address into the internet and find out the value of your home, but is the answer you’re getting accurate?
Almost certainly not.
These online tools themselves admit that the issue of home value is more complicated than a few numbers punched into an equation. Firstly, the interior condition cannot be determined by the outside of a home. Secondly, the numbers that feel as though they should steer the evaluation aren’t always reported accurately, which obviously causes a problem. These data points can also be edited– an individual can change the year the home was built, the number of bedrooms, bathrooms, square footage, etc– all of which can change the value with no way of proving that the editor owns or even has knowledge of the home.
One such webite, Zillow, admits a median error rate of over 8%, with error rates often hitting 11% and higher in some areas. The reason? Again, it’s a simple tool trying to answer a complicated question. The most reported errors seem to occur on homes that have had large renovations, or properties in distress.
Values are difficult to determine because your home is different. Even if another home in your neighborhood is the same layout and was built in the same year, conditions may be different– perhaps your neighbor has a hole in the basement wall, or you have bright orange carpet in your family room. Or, perhaps your home hasn’t been on the market in twenty years, making its value more difficult for the internet to determine.
Another thing the internet has a difficult time keeping up with is the always-changing real estate market. Things are constantly shifting, and that’s hard for an algorithm on the web to keep up with without constant edits. The easiest way to find out the value of your home? Visit the Price Group’s Louisville Home Value tool, which will connect you with one of our agents to help you evaluate the value of your home– accurately.
What has your experience been with online real estate tools to determine home value?