The three main ways to find your home's value
Your home's value depends on which method you use, and each one gives a different number. A comparative market analysis looks at what similar homes sold for recently in your area. An appraisal is a formal assessment by a licensed professional, usually required by lenders. An automated valuation model (AVM) is a computer estimate based on public records and recent sales data — fast but often less accurate than the other two.
None of these is "the" value of your house. They are tools for different purposes. If you are refinancing, your lender will order an appraisal. If you are curious about what you might sell for, a comparative market analysis is more useful. If you need a rough number quickly, an AVM can give you a starting point.
Key Takeaways
- A comparative market analysis compares your home to similar properties that sold recently in your neighborhood and is the most practical method for sellers.
- An appraisal is a formal inspection by a licensed professional and is required by lenders before they will finance a mortgage.
- Automated valuation models use public records and algorithms to estimate value instantly online, but they miss details a human appraiser would catch.
- Your home's assessed value for property taxes is separate from its market value and is usually lower.
- Real estate agents, appraisers, and county assessors are the three main sources of value information, each serving a different purpose.
Comparative market analysis: what similar homes sold for
A comparative market analysis (CMA) looks at homes similar to yours — same neighborhood, similar size, similar age, similar condition — and sees what they sold for in the last 90 days or so. A real estate agent can pull this data from the local multiple listing service (MLS), which is the database brokers use to list homes for sale. The agent compares sale price, days on market, whether the sale was an arm's-length transaction (not a family member or corporate investor buying at a discount), and any unusual terms.
This method works best for homes in active markets where comparable sales happen regularly. If your neighborhood has five homes that sold in the past three months, a CMA is reliable. If the last comparable sale was two years ago, the number is less useful. A real estate agent will do a CMA for free if you are considering selling, though they have an incentive to estimate high. You can also pay a real estate appraiser to do a CMA independently.
Appraisals: the formal inspection method
An appraisal is an official assessment by a state-licensed appraiser who inspects your home in person. They look at the structure, roof, foundation, systems (electrical, plumbing, HVAC), interior condition, lot size, and location. They compare your home to recent sales of similar properties and produce a written report. Lenders require an appraisal before they will approve a mortgage or refinance because they need to know the home is worth at least what they are lending.
Appraisals typically cost $300 to $600 depending on the home's size and location. You pay for the appraisal when you apply for a mortgage or refinance, and the lender orders it from an independent appraiser — you do not choose the appraiser yourself. The appraisal is binding for the lender's purposes but not for you. If you disagree with the appraisal, you can request a reconsideration or order a second appraisal at your own expense.
Automated valuation models: instant online estimates
Websites like Zillow, Redfin, Realtor.com, and Trulia use automated valuation models (AVMs) to estimate home values. These tools pull public records (sale history, property taxes, square footage, lot size), recent comparable sales, and market trends, then run them through an algorithm to produce an estimate in seconds. Zillow calls its estimate a "Zestimate," Redfin calls it a "Redfin Estimate," and so on.
AVMs are useful for a quick sense of your home's ballpark value, but they are often inaccurate. The algorithm cannot see inside your home, so it does not know whether your kitchen was renovated last year or is original from 1985. It does not know whether you have a finished basement, a pool, or foundation damage. It does not account for neighborhood details like a view, proximity to a highway, or a school's reputation. Zillow publishes its margin of error: the median error is around 2 percent for homes on the market, but can be 5 to 10 percent or higher for homes not currently listed.
Property tax assessments: a separate number
Your county assessor determines your home's assessed value for property tax purposes. This is not the same as market value. Assessed values are usually lower than what your home would sell for because they are set by formula and updated infrequently — sometimes only every few years. Your property tax bill is based on this assessed value, not on what a buyer would pay.
You can find your assessed value on your property tax bill or on your county assessor's website. Search "[your county] assessor" plus "property search" or "property records." The assessed value is public information. If you believe your assessed value is too high, most counties allow you to file a formal challenge, though the process and deadlines vary by location.
When to use each method
| Method | Cost | Accuracy | Best for |
|---|---|---|---|
| Comparative market analysis | Free (from agent) or $300–$500 (independent) | High in active markets | Sellers deciding on listing price |
| Appraisal | $300–$600 | High | Lenders and refinancing |
| Automated valuation model | Free | Medium (2–10% margin of error) | Quick estimates, curiosity |
| Assessed value | Free | Low (often outdated) | Property tax purposes only |
How to get a valuation without paying for an appraisal
If you are not buying or refinancing, you do not need to pay for a formal appraisal. Start with a free online estimate from Zillow, Redfin, or Realtor.com to get a rough number. Then look at comparable sales yourself by searching your county's property records or MLS listings in your area — most real estate websites let you filter by neighborhood, size, and sale date.
If you want a professional opinion without the full appraisal cost, contact a real estate agent and ask for a comparative market analysis. Most agents will provide one for free as part of a consultation, especially if you mention you might sell in the future. Be aware that agents have an incentive to estimate high to attract you as a client. For a truly independent assessment, you can hire an appraiser directly, though you will pay the full fee.
Frequently Asked Questions
How often does my home's value change?
Market values change constantly based on sales in your area, interest rates, and local economic conditions. Your assessed value for taxes usually updates every one to four years depending on your county. Online estimates update whenever new comparable sales data becomes available, sometimes weekly or monthly.
Can I use an online estimate to refinance?
No. Lenders require a formal appraisal by a licensed professional before they will refinance. An online estimate is not acceptable because the lender needs to know the home's actual condition and verify that it is worth at least what they are lending.
What if my home is unique or in a rural area?
Comparable sales may be hard to find, which makes all valuation methods less reliable. An appraisal is still the most accurate option because the appraiser can adjust for unique features and travel to remote areas. Online estimates are often inaccurate in rural markets because there is not enough recent sales data.
Does a home inspection give me the home's value?
No. A home inspection identifies problems and repairs needed but does not estimate value. An appraisal includes an inspection as part of the process, but a standalone inspection is about condition, not price.
Should I get an appraisal before I list my home for sale?
Usually not. A comparative market analysis from a real estate agent is more useful for setting a listing price. An appraisal is designed for lenders, not sellers, and the cost is not worth it unless you have a specific reason to know the exact appraised value.