Good morning Ritu. Boots on the ground are much more accurate than an algorithm when it comes to determine the current market value of real estate. Enjoy your day. 

Great post and very true! Sellers don't realize that online assessments fail to recognize different aspects that negatively (or positively) affects one's value position.

Hi Ritu, I hope more Sellers and Buyers can read your post - great observations. Online estimates do not see buyer demand, how your home feels when you enter, micro-shifts in the neighborhood, updates that are tasteful and functional, and make you want to be at home. You can see those things when you visit the home.

very good points on an important topic....not to mention that different valuation methods utilizing algorithms will yield possibly significant results

 Hi, Ritu.

     The challenge is when a Buyer objects to the price, "But Zillow / Realtor dot com / Redfin says that the home is only worth X dollars". 

     If it's my listing, I calmly explain to them similar points that you made, and show them why those computer algorithms are only approximations.  And I tell them that any offer made at that Zillow price is going to get rejected.

     When I represent Buyers, we have this talk before we even look at houses.  A quick discussion of how homes are appraised, and how  "the real value" is determined.  Sure, those online websites might be good for general information, and you can see lots of photos in advance, etc. but please do NOT think that those prices are realistic.

Excellent post!  In larger cities, there are also sub-markets that consist of buyers, balanced and sellers markets.  What might be a buyers market with that $40,000 lower valuation may be a sellers market,  comanding higher prices.   Good for you and congratulations to you and your sellers!

First congrats on the feature and your points are well taken As Wayne Martin stated, boots on the ground. Out here in NW AZ there are agents who wear boots and walk the ground. 

Excellent.  Sellers Beware!

There are additional issues with the online values. If the owner looks carefully at the types of homes that were used to gather the pricing, they may see that the homes were not of a similar style as theirs, which skews the values as well.

Hi Ritu! This is such a perfect example of why pricing a home requires far more than plugging data into an algorithm. Online estimates can be a helpful starting point, but they cannot walk through the home, understand the nuances of the neighborhood or interpret current buyer behavior. Data may provide the numbers, but experience and strategy give those numbers meaning—and $40,000 is quite a meaningful difference!