As a State Certified Residential Real Estate Appraiser, I enlist the use of valuation tools to cross reference my valuations. Housing values take into account many different aspects and sometimes alternative sources can give the appraiser additional data. Being a member of My Florida Regional Multiple Listing Service, we have several valuation sources made available to us. These sources have models that give us a high, low and median range. Additionally, we are provided a confidence rating.
Consumers have sources like Zillow and Trulia at their finger tips. It is very easy to search your address of interest and pinpoint several services that will give you a value. These sites are right on sometimes but often are off when compared to the reality of a sale or professional appraisal. The reason is these sites use mass appraisal techniques and often do not have the correct or updated data regarding the subject. The data utilized in this type of valuation does not take into account updates and remodeling efforts. Extra features such as swimming pools and accessory structures are not included. Favorable views such as water or conservation are not recognized.
The mass appraisal valuation models collect all sales to come up with a price per square foot amount that is then applied to the subject. This number is skewed not only by the aforementioned items but also the superior or inferior sales within the area. Unless the neighborhood is a cookie cutter area where all properties are nearly identical, there will be issues. For example if the neighborhood nearby has superior homes, your valuation is likely to be inflated. On the contrary if the nearby developments are inferior, it is likely these sales will suppress your homes value.
Proceed with Caution
Be cautious when relying on this online data to establish housing values. Take a look at the sales utilized (if available) to compare the similarity of those homes to yours. Remember the small cost of an appraisal can save you time (money) when listing your home for sale. A professional appraisal can also save you from overpaying for a new home.