The number of home valuation Web sites continues to grow.
A simple Google search for “How much is my home worth?” shows 119,000 results and seems to get larger month-over-month.
For home sellers, these programs can give a false sense of security (or insecurity!) about at what price a home should be listed for sale.
Computer programs can never replace the role of licensed home appraisers and that’s because valuing a home is not as simple as providing some inputs (traits) in order to get some output (value). There is a “fuzzy logic” that computer programs just can’t produce in the same way that appraisers and real estate agents can.
Even with tax records, recent sales data, and a full description of a property, valuing a home is as much “art” as “science”.
There are “human” considerations that include neighborhood quality and curb appeal that a computer can’t measure. Nor can a program take into account how a kitchen may require $20,000 worth of work to bring it “up-to-date” or inline with neighbors’ homes.
Besides, the real value of a home is what somebody is willing to pay for it. Therefore, you can never truly know what a home is worth until it has sold.
So, while automated valuation tools are a good start to finding a home’s value, they’re not equipped to finish the job.