The risk of online home valuation estimates for your house

It’s so easy to go to a popular real estate website, enter your home address, click on a button and then bam! In an instant, a webpage appears with your “online home valuation”. Today, there’s a plethora of online home valuation estimates. It almost feels like an ice cream store, because they come in so many different flavors.
But do these online home valuations work? Short answer: no. They are never as accurate as an estimate from a real estate professional. Their knowledge of your local market and your home is key. Studies have shown even the best ones can be off by 30% or more.
Just ask Zillow’s CEO. He sold his home in Seattle for $1.05 million. The Zestimate on his home: $1.75 million.
 
Let’s take it a step further. Last year I reported on a local property (it was in Eagle) that was ridiculously off on a Zestimate. Even after it was sold! This is why Idaho is a 1-star state with regards to accuracy. To see that Zillow misstep, click here.
 
Automated valuation websites can help buyers and sellers get a very rough idea of what a home may be worth. But I will emphasize a “ROUGH IDEA”. The true value of a home requires significant research.