Find your Home Value Online

Appraisers are cautioning consumers to be aware of the difference between online home valuation services and an eyes-on, hands-on appraisal.

Home valuation sites provide an estimated value of residential property based on information available from public records, and a few other sources. Valuations can be a handy comparison tool, a source for past sales prices or as a guesstimate of home value growth. They won't pass the muster with lenders who need a certified appraisal to grant a home loan. They are not reliable enough to use to set a sales price. These sites use computerized data crunching tools called "automated valuation Model" or AVMs. The crunching typically begins with public records such as tax assessments, deeds, demographics, property characteristics and sales price trends, but can also include data from mortgages, multiple listings and appraisals.

AVMs run an address and zip code through mathematical models to compare the home with others recently sold in the same area. Historical trends may be considered and some of the most sophisticated can take into account a homes unique characteristics such as bedrooms, baths, and compare it with similar properties. Each site interprets data differently. They don't all use the same pool of data. There is also a lag time before a sale is available as public record that can be used in the data pool and those times vary from state to state. Some state property records are not available to the public.

Real estate agents comps go further. They use comps to set sale prices. Comps are pulled from the most recent sales and listings in the same neighborhood as the house do to be put up for sale. The data is obtained from the local multiple listing service. The data can be insider information available only to real estate agents, including data that hasn�t yet been filed as a public record or data that may not make it to the public records. Comps are also homes as similar as possible to the home being valued, in terms of age, size, features, rooms, and floor plan and lot size.

An appraisal goes even further and includes a visual inspection to account for factors even comps can overlook, including recent upgrades, modernized appliances, floor plan utility, and the age and condition of not just the home, but specific areas in the home such as the basement or detached garage.

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