Best Online Home Appraisal Tools in 2024
Go Back To Previous PageOnline home appraisals can give homeowners and buyers a basic understanding of a property’s value. However, it is advisable to engage a professional appraiser for more precise and legally recognized appraisals, particularly for financing or selling purposes. Let’s go over the Best Online Home Appraisal Tools for 2024.
What Is an Online House Appraisal?
An online house appraisal estimates a property’s value using online tools and databases. These tools use data such as recent sales of comparable homes, current market
trends, and property details to estimate a home’s value. While they offer convenience and quick results, they may not be as accurate as a professional appraisal conducted by a licensed appraiser. These online tools are also known as home value estimators. (HVA)
Redfin Estimate
Redfin provides estimates based on MLS data, market trends, and user inputs. It claims its estimates are highly accurate, particularly in areas where it operates as a real estate brokerage.
Realtor.com My Home
Realtor.com provides a tool for estimating home values using MLS, public records, and recent sales data. This tool offers insights into market trends and comparable properties.
Chase Home Value Estimator
Chase provides an online tool for estimating home value based on local sales, offering a quick and free snapshot of your home’s potential worth.
Bank of America Real Estate Center
Bank of America’s tool estimates value using MLS data, comparable home sales, and other market data. It is accessible to anyone, not just Bank of America customers.
How Do Online Home Appraisals Work?
Online home appraisals use an algorithm called Automated Valuation Modeling (AVM) to estimate the value of your house. The algorithm considers the information you provide, the house’s sale history, and the prices of homes nearby.
However, the accuracy of the appraisal depends on the available data, meaning that online appraisals may not be as accurate as traditional ones since they may not easily account for things like new renovations and differences in the quality of finishes between homes.
The convenience of online home appraisals means you can obtain them for free with minimal effort, making them appealing to those short on time and in cash.
How Do You Get a Home Appraisal Online?
To receive an online home appraisal, visit a website that offers online appraisals, such as Ownerly, and request an appraisal. You’ll need to provide details about the house you want appraised. After that, they will give you an approximate estimate of the property’s value based on similar homes in your area.
It’s a straightforward process, but it’s important to note that online home appraisals only offer a rough estimate of your home’s value. Even the most accurate estimators can typically only be within 4-6% of a property’s actual value.
How Accurate Are Online Home Appraisals?
It’s important to remember that online home appraisals can provide a general idea of your home’s value, but they are rarely entirely accurate.
Online appraisals overlook several factors, such as damage to your home, updates, renovations, and the historical value of your property. For example, they might not be able to detect issues like leaky pipes or wall damage, which can significantly reduce your home’s value.
Additionally, the appraisal may not reflect updated features like remodeled bathrooms. Furthermore, if your home holds historical significance and is not accounted for in the online appraisal, you might receive an underestimated value.
We recommend you obtain multiple appraisals from different websites to minimize the risk of receiving a low estimate.
What’s the Most Accurate Online Home Appraisal Tool?
It can be challenging to find the most accurate online home appraisal tool, as new providers frequently introduce new tools and improve their technology. However, the real estate giant Zillow owns one of the most notoriously inaccurate home valuation tools in the market.
Their Zestimate appraisal is well known for its inaccuracy despite their claim of always being within 4.5 percent of a home’s actual value. Some high-profile examples include former Zillow CEO Spencer Rascoff listing and selling his homes at more than 30% off of the Zestimate appraisal.
Why Do Online Home Appraisals Vary?
If you get a home appraisal online, you might receive different estimates from different sources. This can happen because each site uses various data sources and algorithms. Therefore, it’s important to remember that these estimates are rough approximations and may not be reliable.
Can a Free Online House Appraisal Replace a Standard Appraisal?
Free online house appraisals can give you a general idea of your home’s value, but they may not be as reliable as in-person appraisals because they don’t account for all the damages and upgrades.
If you’re serious about buying a specific house and are seeking bank funding, an in-person appraisal is necessary. Lenders require an official appraisal before finalizing the purchase. A free online appraisal is sufficient for general curiosity about your home’s value. Just remember not to base significant decisions solely on an algorithm.
Online Home Appraisal Bottom Line
Online house appraisals are becoming increasingly accurate and popular. They can provide a general idea of your house’s current value but are not recommended for severe homebuyers, as most lenders won’t accept them for buyer’s appraisals.
If you’re serious about buying a house, hiring a local appraiser is best to get an accurate valuation. While online home appraisals are convenient, hiring a live person can save you time and money in the long run, ensuring you get the best price for your home.
Georges has been working in Wall Street for the last 16 years trading derivatives with hedge funds. He has been an active real estate investor for over a decade. Georges graduated from HEC Business School in Paris and holds a master in Finance from ESADE Barcelona.
