Anyone who looked for a Tulsa home for sale recently online probably noticed something interesting. No matter which site you looked at (Zillow, Redfin, Realtor.com, etc.), in addition to the “for sale” price, you may have seen an “estimated value”. If the estimate comes in higher than the list price, you may think the home is a bargain. A lower valuation may make the property seem overpriced. However, these online home value estimates can actually be misleading.
How Online Home Value Estimates Work
First of all, each site pulls information from various sources. Also, each site uses a different algorithm to determine a property’s home value. Therefore, you may find a huge discrepancy between each site (to the tune of tens of thousands of dollars). Zillow pulls data from public records as well as information submitted by its users to create their Zestimates. Zillow claims that its median margin of error for their Zestimates runs 1.9% for on-market homes but rises to 6.9% for off-market properties.
Redfin tends to be a little less accurate than Zillow. However, they are also more transparent in where they get their information from. Realtor.com on the other hand actually provides as many as three different valuations pulled from independent providers such as Corelogic, Quantarium, and Collateral Analytics.
Who Provides the Best Home Value Estimates
Each of these valuation estimates is only as good as their basic data. Unfortunately, this data may be erroneous. For example, they do not take into consideration the condition of the property. And that affects a property’s value. Therefore, the best way to find out what your Tulsa home is worth is to get an appraisal. The appraiser physically walks through a property as well as collects public data on homes in the area to help provide an informed valuation. So, while online valuation tools offer a general idea, only an appraiser can provide a more accurate number for you. Besides, lenders require this as part of the home loan process.
FEATURED TULSA HOME FOR SALE
Lori Cain, REALTOR®, Serving Midtown and the greater Tulsa, OK area. Call 918-852-5036.
[…] cannot always trust that those online home value estimators are accurate. It makes more sense to look at “comps” when trying to decide your home’s list […]