Unlock Your Home's Worth Instantly with Online Valuation Tools
How Do Online Valuation Tools Work?
The core of these tools lies in their ability to process vast amounts of data. They pull information from public records, real estate listings, and historical sales data to generate an estimate. The algorithm compares your home to similar properties in your area that have recently sold, also known as "comparables" or "comps." The more data available, the more accurate the estimate tends to be.
For example, Zillow's Zestimate is one of the most well-known online valuation tools. It uses data from public records, user-submitted information, and MLS feeds to provide an estimated market value for over 100 million homes across the United States1. While these tools are incredibly convenient, it's important to note that they provide estimates, not appraisals, and should be used as a starting point rather than a definitive value.