Is a Realtor.com estimate accurate in Houston, Texas? Whether you’re planning a home sale, thinking about refinancing, or just want a better understanding of your financial situation, it’s important to know your home’s valuation in the current market.
But how reliable is Realtor.com for determining your home’s market value? In this post, our team at Your Home Sold Guaranteed Realty - Chris Schmidt Team will discuss the accuracy of Realtor.com’s home value estimates. We’ll also discuss the top ways to get an accurate home value in Houston.
Key Takeaways:
- A home value estimate from Realtor.com is generally not accurate. Realtor.com doesn’t publicly disclose the median error rates of its valuations, so it’s hard to know exactly how much they differ from the actual market value of sold homes.
- Realtor.com uses an algorithmic method to determine its valuations. Their algorithm is based on local market information, pricing trends, common property characteristics, and mathematical models.
- A comparative market analysis (CMA), typically conducted by professional realtors, stands out as one of the most reliable methods of determining home values.
Is a Realtor.com Estimate Accurate?
A home value estimate from Realtor.com is generally not accurate. Realtor.com doesn’t publicly disclose the median error rates of its valuations, so it’s hard to know exactly how much they differ from the actual market value of sold homes.
Realtor.com uses an algorithmic method to determine its valuations. Their algorithm is based on local market information, pricing trends, common property characteristics, and mathematical models. This data comes from three different valuation providers that are independent of Realtor.com.
The problem with algorithmic calculations is that they cannot factor in the unique features, renovations, or recent improvements of your home that influence its market value. Instead, they can only provide a broad, general valuation.
In addition, algorithms are only as accurate as the data available to them. So if you live in an area that doesn’t have much market information to begin with, you likely won’t get an accurate valuation.
5 Ways to Find Accurate Home Values in Houston
Get a Comparative Market Analysis (CMA)
CMAs are one of the most reliable methods of finding home values. With this technique, your realtor will evaluate your home in person and analyze recent sales in your area, focusing on homes that are similar to yours in terms of size, age, condition, and other features. They’re able to leverage their access to exclusive tools like the Multiple Listing Service to come up with an accurate valuation.
Pay For a Professional Home Appraisal
For even greater accuracy, you can turn to professional home appraisals instead of CMA analyses. Appraisers are licensed to evaluate homes and determine their exact market worth. They do this by evaluating the home, looking at comparable sales data, and using their market expertise.
Look at Sales Prices in Your Neighborhood
You can independently review the prices of currently listed and recently sold homes in your area, to get an idea of what your home is worth. However, you won’t have access to the same up-to-date market information as a professional realtor.
Calculate Price per Square Foot
Researching recent sales prices of comparable homes and dividing them by their square footage can offer a rough estimate of the average price per square foot in your local market. Multiplying this figure by your home’s square footage can give you an estimate of its market value.
Check County Assessor’s Records
Checking your local county assessor’s records can help you find the assessed value of your home, a figure that is used for determining property taxes. The assessed value of your home can serve as a valuable data point for gauging your property’s worth. However, it may be different from its true market value.
Find Your Home’s Value Today with an Experienced Houston Realtor
For the most accurate home valuation, it’s best to combine multiple methods, including sites like Realtor.com, and consult with a professional. If you’re looking to find your home’s market value in Houston, contact Chris Schmidt and our team at Your Home Sold Guaranteed Realty - Chris Schmidt Team today.
Our realtors have years of experience working in the Houston metropolitan area. Our familiarity with the local market trends, as well as our legendary customer service, are why we’ve developed a reputation as the best realtor in Houston.
We can easily help you find the value of your home, and if you decide you want to sell it, our unique Guaranteed Sale Program protects your interests and ensures a risk-free sale.
To learn more about getting a home valuation from our team, give us a call at 713-322-5604. You can also fill out the form on this page or send a message to [javascript protected email address].
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