The three ways to find your home's value
Your home's value is what a buyer would pay for it today in your local market. You can find this number through a professional appraisal, an automated valuation model (AVM), or a comparative market analysis (CMA) from a real estate agent. Each method costs different amounts, takes different time, and gives you different levels of detail.
The method you choose depends on why you need the number. If you are refinancing a mortgage, your lender will order the appraisal for you. If you are selling, a real estate agent will provide a CMA at no cost. If you are curious about your home's value for tax or insurance purposes, an online estimate is usually enough to start.
None of these methods is perfect. All three can be off by 5 to 10 percent or more, depending on how unique your home is, how recently homes near you sold, and how much detail the method captures. The more recent the comparable sales data, the more accurate the estimate tends to be.
Key Takeaways
- A professional appraisal ordered by a lender costs $300 to $700 and takes one to two weeks, but is required for refinancing and is the most detailed method.
- Online home value estimates from Zillow, Redfin, or your county assessor are free and instant but can miss important details about your specific home.
- A comparative market analysis from a real estate agent is free and based on actual recent sales in your neighborhood, making it useful for selling decisions.
- Your home's assessed value for property taxes is often lower than its market value and is set by your county assessor, not by you.
Professional appraisals: the most detailed method
A professional appraisal is an in-person inspection and written report by a licensed appraiser. The appraiser walks through your home, measures rooms, checks the roof and foundation, notes upgrades and damage, and compares your home to similar homes that sold recently in your area. The result is a detailed written report that lenders accept as proof of value.
Appraisals cost between $300 and $700 depending on your home's size and location. You pay this fee upfront, and it does not come back to you if the appraisal comes in lower than you expected. The appraisal takes one to two weeks from the time you order it to the time you receive the report.
You cannot order an appraisal on your own for most purposes — lenders order them when you refinance or take out a home equity loan. If you want an appraisal for your own information (to settle a divorce, for insurance, or for tax purposes), you can hire an appraiser directly through your state's appraiser licensing board or through a local real estate office. Ask for an appraiser who is independent, not one who works for a lender.
Online estimates: fast and free, but less detailed
Automated valuation models (AVMs) are computer programs that estimate your home's value using public data. Zillow's Zestimate, Redfin's estimate, and your county assessor's online tools all use AVMs. They pull in your home's size, age, lot size, recent sales of nearby homes, and property tax records, then run a formula to produce a number.
These estimates are free and instant. You can check them anytime from your phone. But they have real limits. They do not see inside your home, so they miss upgrades you have made, damage that is not in public records, or the condition of your roof and foundation. They work better in neighborhoods where homes are similar and sell frequently, and worse in neighborhoods where homes are unique or sales are rare.
Most online tools show you the range of uncertainty — Zillow calls it the "Zestimate range" — which tells you the low and high estimate the model thinks is reasonable. Pay attention to this range. If your home is unusual or your neighborhood has few recent sales, the range will be wide, and the estimate is less reliable.
Comparative market analysis: what a real estate agent provides
A comparative market analysis (CMA) is a report prepared by a real estate agent showing what homes like yours have sold for recently. The agent pulls data from the local multiple listing service (MLS), which is the database real estate agents use. They find homes that sold in the last 30 to 90 days that are similar to yours in size, condition, location, and features, then use those sales to estimate your home's value.
A CMA is free — the agent prepares it hoping you will list your home with them. It is more accurate than an online estimate for homes that are about to be sold, because it is based on actual sales prices, not a formula. The agent also knows the local market and can explain why certain homes sold for more or less than others.
The downside is that a CMA is only as good as the agent's knowledge and the quality of the comparable sales they find. If your home is unusual, or if few homes like yours have sold recently, the agent may have to stretch the comparison, which makes the estimate less reliable. You can get a CMA from any agent — you do not have to list with them to ask for one.
Your county assessor's value: different from market value
Your county assessor sets a assessed value for your home each year for property tax purposes. This is not the same as what your home would sell for. Assessed values are usually lower than market values, and they are updated on a schedule set by your state — some counties reassess every year, others every three to five years.
You can find your assessed value on your property tax bill or on your county assessor's website. Search "[your county] assessor" and look for the property search tool. The assessed value is public information.
If you think your assessed value is too high, you can challenge it by filing an appeal with your county assessor's office. The deadline and process vary by state and county. Your county assessor's office can tell you the deadline and what documents you need to submit. Some people hire a property tax consultant to handle the appeal, which costs money but may lower your taxes if the appeal succeeds.
When to use each method
| Situation | Best Method | Why |
|---|---|---|
| Refinancing a mortgage | Professional appraisal (ordered by lender) | Lender requires it; you do not choose |
| Selling your home | Comparative market analysis from agent | Based on actual recent sales; free; helps set listing price |
| Curious about your home's value | Online estimate (Zillow, Redfin, or assessor) | Free; instant; good enough for general knowledge |
| Settling a divorce or estate | Professional appraisal (hired independently) | Detailed; defensible in court; accepted by attorneys |
| Challenging your property tax bill | Your county assessor's value plus local sales data | Assessor sets the value you are appealing; you need comps to argue it down |
What affects your home's value
Your home's value depends on location, condition, size, age, and what homes nearby have sold for recently. A home in a neighborhood where prices are rising will be worth more than the same home in a neighborhood where prices are falling. A home with a new roof and updated kitchen will be worth more than one with an old roof and outdated kitchen. A home on a quiet street will often be worth more than one on a busy street.
Recent sales of similar homes are the strongest signal of value. If three homes like yours sold in your neighborhood in the last month for $350,000, $355,000, and $360,000, your home is probably worth somewhere in that range. If no homes like yours have sold in six months, any estimate is less reliable.
Your own improvements matter, but not always as much as you spent. A $50,000 kitchen renovation might add $30,000 to your home's value, not $50,000. An appraiser or agent can tell you which upgrades tend to pay back and which do not in your market.
Frequently Asked Questions
How often should I check my home's value?
If you are not planning to sell or refinance, checking once a year is enough. If you are thinking about selling within the next year, check every few months to watch the trend. If your neighborhood is changing rapidly — new development, school closures, crime changes — check more often, because value can shift quickly.
Why is my Zillow estimate so different from what the real estate agent said?
Zillow's estimate is a formula based on public data and may not know about recent upgrades you made, damage that is not in public records, or details about your specific home. An agent's estimate is based on actual sales of similar homes and their knowledge of the local market. If they differ by more than 5 to 10 percent, ask the agent to explain which comparable sales they used.
Can I use an online estimate to refinance my home?
No. Lenders require a professional appraisal ordered through them. An online estimate is not accepted as proof of value for refinancing, home equity loans, or mortgage applications. The lender will order and pay for the appraisal themselves.
What if I disagree with my appraisal?
You can ask the appraiser to reconsider if you think they missed something — a recent renovation, comparable sales they did not see, or an error in the home's measurements. Put your concerns in writing. If the appraiser does not change the value, you can hire a second appraiser at your own cost, though lenders do not always accept a second opinion.
Does my home's value affect my property taxes?
Your assessed value affects your property taxes, but assessed value is not the same as market value. It is usually lower. If you think your assessed value is too high compared to similar homes, you can file an appeal with your county assessor. The appeal process and deadline vary by state.