"Find Out What Your Home is Worth"

Written By Troy Williams
Last Updated Tuesday April 25th 2023

Knowing what your home is worth is important information to have whether you’re selling your home, refinancing, appealing property tax assessments or even have a situation where a legal matter is in play such as estate sale or divorce.

Why Can’t I Just Go Online for a Quick Automated Estimate?

Many people go to public-facing online portals to try to get a quick estimate of their home value. The problem is that the only component of value that is factored into these values is recent sales and listing data. Then an algorithm that averages these values is used to create a computer-generated estimate.

The truth is that your home value will never be accurately determined by an algorithm nor is sales data enough. It doesn’t factor in upgrades your home may have, nor the condition of the property, which makes a tremendous difference in valuation. Additionally, there is no accounting for shifts in the market which can be affected by supply and demand, influenced by current interest rates.

Let’s Start with Understanding “Comps”

“Comps” as we call them in real estate are simply comparable properties to yours that have recently sold or are listed for sale. Comps generally serve as the starting point for your home value, whereas automated estimates stop there.

Because comps are the starting point of value, choosing the right comps and knowing how to factor them into a home value analysis is very important. For example, the properties which are already sold tend to have more weight than those that are active or pending.

To properly incorporate the value of comps, we divide the sold price by the square footage of the property. This gives us a cost per square foot that we can multiply by the square footage of your home to get an initial idea of what it is worth.

The best metric for factoring in active or pending properties is the sold-to-list ratio observed from the properties that have been sold already. This is the net percentage of list price that other properties sold for, and therefore can be used to estimate what active/pending properties will ultimately settle for.

Another factor observed from looking at comps is “DOM” which stands for days-on-market. The longer homes are sitting on the market, the better the indication of shifting market conditions can be perceived.

An Accurate Home Valuation Goes Beyond Just “Comps”.

To go beyond just averaging the value of comps, a professional such as an appraiser or real estate agent must consider market factors and property condition, which requires collecting more data about the property.

Here are just a few examples of these factors that should be considered, which no automated estimate reflects:

• Type, age and condition of heating and cooling systems
• Electrical systems
• Roof type, age, condition and warranty
• “Green” features such as upgraded insulation, solar panels, generators
• Age & Condition of Well & Septic systems
• Amount of usable land and whether it is sub-dividable
• Number of bedrooms and bathrooms
• Kitchen & Bath Upgrades
• Flooring Upgrades
• Inventory Supply & Demand

These factors can swing your property value up or down as much as 50% versus a mere estimate based on comps.

“Artificial Intelligence” is no substitute for Professional Expertise!

Based on the information I’ve provided, it should be obvious that when you’re making financial decisions about your biggest investment, you’re going to need more than an automated estimate. There is an art and a science to determining value.

To that end I have created a tool I call the “Property Value Estimator” which takes all of the data points I’ve described and quickly calculates a much more accurate estimate of your home value than just the comps.

To get access to this tool for free, simply fill out the form on this page, and give as much detail as possible about your property. I will follow up with you with any questions I have, and then provide you a reliable estimate.