How Accurate are Online Home Valuations?

By Gwen Daubenmeyer

Gwen Daubenmeyer is the founder of our team. She brings an unwavering commitment to her clients and a get-it-done attitude. Gwen is unapologetically competitive. Marketing and negotiation are her Olympic events; if she could medal, she would. While winning is her “what,” her clients are her “why.”

Have you ever scanned a QR code to find the online value of your home? I do. I scan it every time I see one. And every time, it’s different.

Sometimes, I’m shocked at these estimates, and sometimes I’m disappointed, and once in a while, they’re spot on. Most of the time, though, not so much. Even Zillow reports that their estimated values, “Zestimates,” have been off by as much as 40%.

Why can’t an algorithm get it right? While AI estimates of a home’s market value have improved, it is far from an exact science. Even the best algorithm, like ours, is not capable of making accurate adjustments to reflect your updates, the grade of the finishes in your home like quartzite vs Formica, how well a home is maintained, or esoteric values such as curb appeal and view. That will always require the expertise of a real estate agent.

Online valuations can still be useful when you use them as one of several tools to estimate your home’s value, but we don’t recommend putting much weight on them when you’re making financial decisions.

AI valuations are an estimate of value, not a professional opinion. According to some online valuations, my home’s value has been off by as much as $100,000. It’s a good thing I know what I’m doing.

If you’re considering a refinance to pay off bills or send your kid to college, or if you’re tossing around a move, call us for an accurate value before making an important decision.

It will only take a 20-30 minute walk-through of your home, and you’ll know for sure. As always, there’s no cost, commitment, or obligation.

You need more than an estimate of value before making important decisions; we don’t mind helping, and we’re not pushy salespeople.

We’re always peeling back the curtain here and discussing real-life real estate pitfalls and good practices. If you found this helpful, please like and subscribe!