Pros and Cons of Online Home Valuation Tools With Experts Advice

By
Real Estate Agent with House Stories

When you are in the market trying to sell your home, its actual value can be difficult to determine. After all, with so many properties that could be up for sale in a particular area, how can you be sure that you value your home at the right price?

This is where online home valuation tools can come in handy. These online tools can help home sellers find a figure to set their home’s price tag through different methods. 

However, online home valuation tools cannot provide completely accurate results all of the time. Therefore, these tools are not always something that should always be relied on. But, that does not diminish the value they can provide for giving you price information about your home.

This article will highlight some pros and cons of online home valuation tools so that you know what to consider when using these tools. Plus, this article will also give you real estate expert’s opinions about these online tools.

What Are Online Home Valuation Tools?

Homes are assets that could be difficult to price for homeowners. Factors like market conditions, the state of the home itself, or location can all play a role in the actual value of a property. When these things are taken into consideration, homeowners may find themselves in trouble when trying to find the price of their house.

However, there are online home valuation tools available that enable homeowners to check the price of their homes. The different sites available for use have a variety of ways to determine their price point. 

Why You Should Use Online Home Valuation Tools

The main attraction for using online home valuation tools is the convenience they provide users. By just simply placing an address, users will have a value placed on a particular property. This lets homeowners get rid of the hassle of going through home appraisals, which take more time and more resources. 

The determined value using these tools lets homeowners know what price they should list a property. They are convenient and easy to use, plus they can relieve some of the pressure homeowners feel when trying to sell their homes.

Things to Consider When Using Online Home Valuation Tools

As good as it sounds, using online home valuation tools for your real estate pricing decisions may not be the best idea. Though convenient and easy to use, home valuation tools only rely on estimates to get their home values. 

These tools do not have on-the-ground experience or expertise as real estate agents do. As a result, the price points these tools give to homeowners may not be completely accurate or reliable. This is because the projected values are only ballpark estimates that do not hone in on the actual value of a particular property.

In addition, different locations can have different data figures, which can therefore affect estimates.

What Do the Experts Think?

Sims Real Estate Group, alongside Jason Simard and his team, thinks that there is more to just listing a home to get it to sell. Proper research and tools have to be used to help finalize both a valuation and a buyer for a home. 

According to them, technology and different tools can help provide a value that would allow a home to sell better, and things like online home valuation tools can do just that. 

Ron Wysocarski from Wyse Home Team Realty advises sellers to take advantage of tools like Zillow. However, he also recommends not relying on them all the time since, based on his experience, these tools do not give a reliable value figure.

For example, Zillow has a median error rate of around 1.9% for nationwide estimates. This margin of error rises to 6.9% for off-market properties.  

Wysocarski says these instruments can help provide an idea of what a house could go for. But to sell homes at the best price, one must consult professionals.

Hire Realty’s Nicholas McMillan also says to go for real estate professionals. Besides knowing more about the market and the neighborhood, they also know how to work out a deal as a middle-man. 

Final Thoughts

Online home valuation tools can prove to be valuable things when it comes to selling real estate. These tools provide you with helpful information to give you an idea of what you should expect from a property.

However, it should be taken into account that the home valuations these tools provide you are not entirely accurate. They can give ballpark figures but not accurate valuations. 

Nonetheless, that does not mean you should not use them. On the contrary, they should be used as a form of consultation, alongside other information, to help you with decisions about your home. 

 

Source: https://pixabay.com/photos/mortgage-house-money-budget-3580537/

Comments (1)

Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Aaron - an online home valuation is a good conversation starter.  Beyond that, a home owner thinking of placing their property on the market for sale should contact a local real estate professional for insights about pricing and the methods of making that sale a realty reality.  

Sep 16, 2021 06:43 AM