We all plan to buy a home one day. But before buying a home, you should know what your home is worth. You need to know the value of your home so that you don’t end up paying more money than what it’s worth. There are many online tools that you can use to get a rough idea of your home’s value. This blog will list some of these tools.
You also need to know about the value of the property that you plan to purchase since that can have a big impact on your buying decision. Here, then, are the 5 top cost estimation tools for home buyers in Effingham County and Savannah.
What to Consider When Choosing a Cost Estimation Tool
Each of the cost estimation tools we’ll get into below has pros and cons, advantages and disadvantages. “Each site uses a different set of criteria and varying algorithms to perform a valuation. Accuracy is critical, but there are some other key factors to remember when you’re looking to answer the question of ‘What’s [a] home worth?’”
Purpose
“Home value estimators can return results for homes on or off the market. Some estimators will return only a home’s valuation, while others will include more information about a home, including its acreage, square footage, and the number of rooms.” Which one is best for you will be determined in large part by your specific purpose in using it.
Not Market or Appraised Values
“When using home value estimator sites, consider that these values aren’t market values. . . . The values on home value estimator sites aren’t appraisal values, either. . . . Home value estimator sites may consider the market and appraised values along with other values to arrive at their estimates. Still, valuations from these sites are only estimates and could change due to several variables.”
Accuracy
Similarly, the home values you get from a cost estimation tool may not be entirely accurate. “Depending on whether the property is on or off the market, some sites may be off by as much as 1 to 10 percent.”
Frequency of Updates
It’s also important to look at when and how often a site/tool updates the information. The value of a home can change in either direction over time, so look for a site that pulls “from robust listing sites [and] will typically update more regularly.”
So now that you’re aware of these things let’s get to the actual cost estimation tools . . .
1. Zillow
Zillow is one of the most accurate cost estimation tools available, having a “robust database with many listings and evolving algorithms.”
“Zillow boasts that it is one of the most frequented real estate websites in the United States. So it should come as no surprise that its highly accurate home value estimator is a tool that adds to its popularity. It has a very low median error rate for on-market homes of 1.9 percent and off-market homes of 6.9 percent. Zillow also has the most extensive database and an evolving proprietary algorithm, making its estimates, known as Zestimates, more reliable than those of most other sites.”
2. Redfin
Redfin is another good cost estimation tool because it provides daily updates on the information. In addition, Redfin is a real estate brokerage and so “gathers information on properties from reliable sources.”
Redfin has “a median error rate of 2.24 percent for on-market homes and 6.74 percent for off-market homes. . . . The site is easy to use, and recent home listings are displayed with a map so users have a visual aid when looking at sales trends. Valuations can skew high for on-market homes, but the estimator is one of the most accurate available, and Redfin is still one of the best home value estimator sites.”
3. Realtor.com
Compared to other cost estimation tools, Redfin has the broadest range of available tools, which makes it especially useful.
Many people know Realtor.com for its reliable information about homes for sale. . . It also has a helpful home value estimator that pulls data from various third-party automated valuations. . . . This information includes the median listing price and the median number of days on the market, which can help track local trends . . . Some of the estimates for on-market homes were lower than average, but overall, [it] is a great resource.”
4. US News Real Estate Calculator
You might not know it because it’s primarily news-focused, but US News has a lot of real estate resources, including a pretty good cost estimation tool. It provides both buyers and sellers a quick and easy way to determine the value of a property. To use it, you simply go to the correct subdomain, enter an address, and then complete a brief survey.
5. Real Estate ABC
Real Estate ABC is one of the most resource-rich sites out there (although a bit clunky to navigate with an old-school design), offering an entire page of various tools, technologies, and calculators. It is especially useful as a mortgage calculator with its five different calculators. With its many layers and resources, it can be an effective cost estimator.
How to Arrive at an Accurate Cost Estimation
As we mentioned early on, these cost estimation tools usually fall a bit short when it comes to accuracy. They just can’t take into account all the factors that go into estimating the value of a property, such as improvements made and local market conditions. The best way to get an accurate valuation of a property is to work with your local Effingham County and Savannah agent. Your agent can perform a comparative market analysis to determine the market value of a property – the figure that actually matters.
With that in mind, we hope that you will use this article as a starting point for your research. And when you are ready to get started on your project, please don’t hesitate to contact me a call at (912) 695-6932! I would be happy to discuss your project in further detail, or even answer any questions that you have about my process.
