Why “Instant Home Value” tools can be inaccurate

Instant home value tools are a great tool to give you an idea of what your home is worth. They usually pull closings accessed from public records that are either in your neighborhood or the same zip code.

outdoor wallpaperThe reasons why this can cause inaccuracies:

Home values include more than the average of past sales. There are many variables that need to be considered when getting accurate value. The biggest thing is comparing your home vs what has sold and adjusting accordingly. This is something that computers can’t really do and an educated human can help you get a more accurate value. 

  • Single story vs 2 story homes – depending on your local market, one may be worth more. In a market where the demographics include an older generation, then single stories will have more value because the demand will be higher.
  • Actual condition of your home – if your home has a long “honey do” list hung up on your fridge then you can almost guarantee that your home is not going be worth at the top of the market. Home buyers that pay top dollar like homes that are move in ready, not a fixer upper.
  • Upgrades can bring more value – comparing your kitchen with the granite counters and 42″ cherry cabinets to the one with vinyl counters will likely give your home a boost in market value.
  • Back yard and lot size – landscaping plays a big role in areas where outdoor living is important. The extra work in a nice patio, built in BBQ or swimming pool can make your home more salable and get you a price at the top of the market.

Fill out the form below to to get a comprehensive market report by a Phoenix Metro Group human staff member.

Also, Instant Home Valuations are a good place to start, you can get one here.