Home Value

If you’re using a Zillow Zestimate to get an accurate home valuation, you may get a skewed result, which could then affect your home’s listing price. While Zillow has historically provided relatively accurate estimates based on the year the home was built, the number of bedrooms, square footage, and other quantitative data, they’ve recently changed their algorithm. Even when Zillow was fairly accurate, it still provided only an estimate as opposed to a true valuation done by an appraiser or Comparative Market Analysis. Here’s how to get an accurate home valuation and why relying on Zillow or similar sites is usually a bad idea. Outstanding client service, experienced business practices, and ingenious marketing strategies are what make our team the most trusted team in the area.Outstanding client service, experienced business practices, and ingenious marketing strategies is what makes our team the most trusted team in the area.

White two-story house with black shutters, a covered entry, and a tree-framed lawn.

What is a Home Valuation?

A home valuation is just a fancy way of saying what the value of your home is. They are used during real estate transactions such as buy-sell or refinances to ensure homeowners or buyers are not overborrowing for a property. The home is used for collateral in a mortgage, and if the borrower defaults on his or her loan, the lender will sell the home to recoup the money lent to buy it. If the home was overvalued and they lent too much, they could lose money. The home valuation ensures they will be able to recoup costs should the mortgage not be paid in full.

White two-story home with a vine-covered balcony, broad stone steps, and landscaped grounds.

What is a Zillow Zestimate?

A Zillow Zestimate is an automated home valuation tool and is recommended as a starting point when determining the value of your home. It incorporates user-submitted and public data and takes into account home facts, location, and market conditions. Zestimates are done entirely online, and no representative of Zillow will visit your home to perform an appraisal. Banks and lenders do not use Zillow or similar services to estimate property and instead rely on the expertise of a licensed appraiser. A Zestimate can be off by nearly 5% nearly 40% of the time in some markets, which amounts to around $15,000 on a $300,000 home.

White brick home entrance with a dark wood door, decorative glass sidelights, and tall white columns.

What is the Main Difference Between a Zillow Zestimate and a Valuation Performed by an Agent?

The main difference between the two is that a Zillow Zestimate is simply an algorithm. You punch in data, and a value pops out. There is no actual human involved who views your home, compares it against others on the market, and produces a detailed report. When an agent conducts a valuation, they are actively involved in the process and create a valuation that is personalized and in-depth.

My Testimonials

See why my clients love working with me.

Cole C.

This is my second time working with the Raiche team. Both experiences were exceptional. Chad and Lisa were extremely helpful and made the whole process efficient and as easy as possible.

James K.

Chad and Lisa were the perfect team. They were reliable, answered every phone call/text/email. Were very diligent in finding the best house for my situation. Highly recommend.

Jennifer H.

Both Lisa and Chad are amazing. I’ve used Lisa on several real estate transactions and, more recently, worked with Chad. Whether selling, buying, or renting, the response time is prompt and on point. They know the market and li...

Max D.

I can't say enough good things about my experience with both Chad and Lisa over the last few weeks. As soon as I reached out to Chad to start working with them, they were ready to go. Chad and Lisa are both courteous, informati...

Glenn M.

Our experience working with the Raiche Team when selling our condo was exceptional. Chad and Lisa were genuinely enthusiastic from the moment we met them. They guided us well in understanding the market, and the entire process ...

Leila R.

Chad and Lisa were amazing to work with! We reached out looking for a rental and they handled everything from finding us an apartment to answering every question we had about the property. Their communication quick and concise,...

Hunter O.

The Raiche Team at Town and Shore Realty was great to work with. Chad and Lisa know the Westerly area really well; they were always quick to respond, and they made the whole process way easier than I expected. From answering qu...

Stephen S.

Lisa and Chad were awesome to work with us in the sale of our property. Very knowledgeable about the real estate market in our area, making it easy for us to make an informed decision. Very prompt and on time with all needs, ou...

Chaimae S.

Chad and Lisa are the best in the business. Every detail mattered, every question was answered immediately, and every challenge was handled before it ever became a problem. Our real estate transaction was complicated but they h...

Katie

We recently purchased a second home on the Rhode Island shoreline and couldn’t have asked for a better experience. From the start, we wanted a realtor who was local and truly knew the area, and Town and Shore Realty delivered. ...

Instant property valuation
Expert advice
Sell for more

How is a Valuation Performed?

There are two accurate ways to perform home valuations: with a Comparative Market Analysis and an appraisal. Here is how the two differ:

Comparative Market Analysis.

A Comparative Market Analysis (CMA) is a tool used by real estate agents to value a home. It evaluates similar homes that have recently sold in the same area. Agents find comparable sales and use them to conduct a sales comparison. In most cases, an agent will find three homes that have recently sold and are as similar to and located as close to the home being valued as possible. Each one is then analyzed to pinpoint differences between it and the home being valued. Once these differences are priced out, the price of each comp is adjusted to see what it would cost if it was identical to the home being valued were it to be sold in the current market.
Comparative Market Analysis.

A Comparative Market Analysis (CMA) is a tool used by real estate agents to value a home. It evaluates similar homes that have recently sold in the same area. Agents find comparable sales and use them to conduct a sales comparison. In most cases, an agent will find three homes that have recently sold and are as similar to and located as close to the home being valued as possible. Each one is then analyzed to pinpoint differences between it and the home being valued. Once these differences are priced out, the price of each comp is adjusted to see what it would cost if it was identical to the home being valued were it to be sold in the current market.

Why is a Valuation Important?

Though getting a valuation in order to sell your home is the most common reason to get a home valuation, it’s not the only one. Here are some more situations when a home valuation may be necessary:

Refinancing.

Lenders base the amount of their loans on the value of your property and usually allow you to borrow a maximum of 75% to 96.5% against your property. Knowing what your home is worth allows lenders to calculate your equity in the home. The more equity you have, the better terms you will receive on your refinance.
Home Improvements.

If you’re doing home improvement projects to increase the resale value, you want to make sure you’re not pricing it out of the market. If your home is already priced on the high-end for your neighborhood, making too many improvements could make it more difficult to sell. When you get a valuation, you can see how your home compares with others in the neighborhood and let this guide your home improvement decisions.
Qualifying for Lines of Credit.

If you want to borrow cash against your home, getting a Home Equity Line of Credit (HELOC) could be a good option. To qualify, you must have a certain level of equity in your home. Most lenders require at least 20%. Getting a home valuation will help you determine if you qualify and will be used by the lender to make a decision on your loan.
Planning.

Though it’s not a necessity, simply knowing the value of your home is good information to have. It will help you plan for the future and deal with unforeseen circumstances when you might be in a position that requires extra money or a quick relocation. Knowing how much equity you have in your home and how much you may be able to borrow against it or sell it for will help you respond to any financial curveballs that life throws at you.

Home Valuation

What is a Home Valuation?

What is a Zillow Zestimate?

What is the Main Difference Between a Zillow Zestimate and a Valuation Performed by an Agent?