Trulia, Zillow, and other real estate websites have plenty of valuable information about houses on the market. One of the main features of these sites is real estate value estimation. At first glance, this is a convenient, helpful tool that allows for easy price and value comparisons. Online real estate appraisals can be quickly updated to change according to the real estate market, but how accurate are they?
When you see an online home value estimate, it’s important to keep in mind that it is merely an estimate. Although the estimates are a good starting point, you can’t rely on them when you’re trying to find the precise price of a home. Online estimates rely on public records and basic information about a home to determine a figure. Those records can be reliable, but the estimates don’t evaluate as much information as an appraiser would. Also, some states don’t publicly release sales records, making online appraisal estimates even less dependable.
An actual home appraisal is a very thorough investigation conducted by a certified home appraiser. An appraisal requires an on-site examination of the interior and exterior of the house, the size of the lot, and other factors that are overlooked by the estimates. An appraiser considers fixture upgrades and add-ons that will raise the value of a home. More importantly, an appraiser can measure the quality and the condition of a property that online estimates cannot. An online home “appraisal” is good for getting a preliminary opinion, but they can’t be used for actually pricing a property you want to sell.
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