The main ways to find your house's value

Your house's value is what a buyer would pay for it right now in your local market. You can find this number through three main routes: a professional appraisal, an automated online estimate, or a real estate agent's opinion. Each gives you a different level of detail and costs different amounts of money.

A professional appraisal is the most formal method. An appraiser licensed in your state visits your home, measures it, inspects the condition, and compares it to similar homes that sold recently in your area. This costs between $300 and $500 and takes about a week. Banks require appraisals before they lend on a home, so if you are refinancing or buying, you will get one anyway.

An automated online estimate — sometimes called an AVM (automated valuation model) — pulls public records and recent sales data to calculate a number instantly. Sites like Zillow, Redfin, and Realtor.com offer these free. They are fast and cost nothing, but they work from data alone and cannot see your home's actual condition or recent renovations.

A real estate agent's market analysis is a written opinion based on comparable sales in your neighborhood. Agents do this free as part of their job — they want to list your home if you decide to sell. It takes a few days and is less formal than an appraisal but more detailed than an online estimate.

Key Takeaways

  • A professional appraisal costs $300 to $500, takes about a week, and is the most accurate method because an appraiser visits your home and inspects it in person.
  • Free online estimates from Zillow, Redfin, and Realtor.com are instant but cannot account for your home's condition, recent repairs, or neighborhood details that affect price.
  • Real estate agents provide free written market analyses based on recent sales of similar homes nearby, though their goal is to list your home for sale.
  • Your county assessor's office publishes a property value estimate for tax purposes, which is public record but often differs from market value.
  • The value of your home changes based on local market conditions, interest rates, and what similar homes actually sold for — not asking prices.

What an appraisal actually includes

When a licensed appraiser values your home, they document the square footage, number of bedrooms and bathrooms, roof condition, foundation type, and any major systems like HVAC or plumbing. They note recent upgrades, damage, or deferred maintenance. They photograph the exterior and interior and record the lot size and zoning.

The appraiser then pulls public records of homes in your area that sold in the last three to six months — these are called comparables or "comps." They adjust the price of each comp up or down based on differences from your home: if a comp sold for $350,000 but has a newer roof and your roof is 15 years old, the appraiser might lower that comp's value by $5,000 to $8,000 when comparing it to yours. After adjusting several comps, they average them to reach a final value.

Appraisals are ordered by lenders, not by you directly. If you are refinancing, your bank orders it. If you are buying, the buyer's lender orders it. You can request an appraisal independently if you want one for estate planning or divorce proceedings, but you will pay the full fee yourself.

How online estimates work and why they differ

Zillow's Zestimate, Redfin's estimate, and similar tools use algorithms that pull data from public records: your home's age, square footage, lot size, and recent sales of nearby homes. The algorithm weights recent sales more heavily than older ones and adjusts for differences in size and condition based on patterns it has learned.

These estimates are useful for a rough sense of direction — if your Zestimate is $425,000 and your neighbor's identical home sold for $420,000 last month, you are in the right ballpark. But the algorithm cannot see inside your home. It does not know that you replaced the electrical panel last year, that the basement floods in heavy rain, or that you renovated the kitchen. It also cannot account for neighborhood-specific details like a new highway planned nearby or a popular school closing.

Online estimates update frequently as new sales data comes in, so the number you see today may be different next month. The sites themselves publish accuracy ranges — Zillow states that about half of its estimates are within 5 percent of actual sale price, but the other half are further off. Use these numbers as a starting point, not a final answer.

What a real estate agent's market analysis shows

When you contact a real estate agent and ask for a market analysis, they prepare a written report called a Comparative Market Analysis (CMA). It lists three to five homes similar to yours that sold recently, showing the sale price, sale date, square footage, lot size, and condition. The agent explains why each comp is similar to or different from your home and what those differences mean for price.

A good CMA is more detailed than an online estimate because the agent has seen the comparable homes in person and knows the neighborhood. They can explain that one comp sold quickly because it was priced right, while another sat on the market for months because the seller overpriced it. They can tell you about upcoming developments, school changes, or market shifts that affect value.

The catch is that agents have an incentive to estimate high — a higher value makes you more likely to list with them. Some agents will give you an inflated number to win your business. If you get a CMA, ask the agent to explain their reasoning for each comp and to show you the actual MLS listings so you can verify the numbers yourself.

Your county assessor's value versus market value

Your county assessor publishes a property value estimate every year or every few years, depending on your state. This value is used to calculate your property tax bill. You can find it by searching your county assessor's website with your address — the information is public record.

The assessor's value is often lower than what your home would sell for on the open market. Assessors use mass appraisal methods that value thousands of homes at once, so they cannot account for individual condition or recent renovations the way a licensed appraiser can. Some states also cap how much the assessed value can increase each year, even if the market value rises faster. In California, for example, assessed value can increase no more than 2 percent per year under Proposition 13.

Do not assume the assessor's number is accurate for selling, refinancing, or insurance purposes. It is a tax number, not a market number. If you believe the assessed value is wrong, most counties allow you to file a formal challenge, usually once per year.

When you need a formal appraisal versus an estimate

You need a formal appraisal when a lender requires one: before refinancing, before buying with a mortgage, or before a home equity loan. You also need one if you are settling an estate, going through a divorce, or filing an insurance claim for major damage. In these situations, the appraisal becomes a legal document that may be used in court or by a government agency.

An online estimate is enough if you are simply curious about your home's value, thinking about selling in a few years, or comparing your home's value to others in your neighborhood. It costs nothing and takes seconds. If you want more detail but do not need a formal document, a real estate agent's CMA is free and gives you local insight.

If you are selling your home, you do not need to order an appraisal yourself. The buyer's lender will order one as part of the mortgage process. Your job is to price the home competitively based on recent comparable sales — this is where a real estate agent's CMA becomes most useful.

Factors that change your home's value

Your home's value moves with the local real estate market. When interest rates drop, buyers can afford higher prices, so values rise. When rates climb, the opposite happens. A recession or local job losses can push values down. A new employer moving to your area or a popular school opening can push them up.

Your home's condition matters more than you might think. A roof that needs replacement can lower value by $8,000 to $15,000 depending on your region. A kitchen or bathroom renovation can add value, but not dollar-for-dollar — you typically recover 50 to 80 percent of what you spend. Deferred maintenance (broken windows, peeling paint, foundation cracks) reduces value more than the cost to fix it.

Location within your neighborhood also affects price. A home on a busy street sells for less than an identical home on a quiet street. Proximity to schools, parks, and transit matters. So does view — a home with a water view or mountain view commands a premium. These details are why an online estimate can be off: the algorithm may not know your home is on the best block in the neighborhood or the worst.

Frequently Asked Questions

How often should I get my home reappraised?

You do not need to get a formal appraisal unless a lender requires one or you need it for a legal reason. If you are curious about your home's value, check an online estimate once or twice a year — it updates free and automatically. If you are planning to sell or refinance within the next year, get a CMA from a real estate agent about three months before you plan to act.

Can I dispute an appraisal if I think it is too low?

Yes. If a lender ordered the appraisal and you believe it is wrong, you can ask the lender to order a second appraisal or ask the appraiser to reconsider specific facts (like a recent renovation they may have missed). Provide documentation: receipts for major work, photos, or comparable sales you found yourself. The appraiser can revise their estimate if you show them information they did not have.

What is the difference between appraised value and assessed value?

Appraised value is what your home would sell for on the open market right now, determined by a licensed appraiser. Assessed value is what your county estimates your home is worth for property tax purposes. Assessed value is usually lower and updates less frequently. They are separate numbers used for different purposes.

Do home improvements always increase my home's value?

Not dollar-for-dollar. A kitchen renovation might cost $30,000 but add only $20,000 to $24,000 in value. Curb appeal improvements like landscaping and exterior paint have better returns. Structural improvements like a new roof or foundation repair add value because they prevent future problems. Personal upgrades like a custom paint color or high-end appliances may not add value if they do not match the neighborhood.

How accurate are the free online home value estimates?

Online estimates are accurate enough for a rough idea but not precise enough for major financial decisions. About half of Zillow's estimates fall within 5 percent of actual sale price, meaning the other half are further off. They work best in active markets with many recent sales and worst in rural areas or neighborhoods with few recent transactions. Use them as a starting point, not a final number.