HOW IT WORKS

What is a home valuation?


A home valuation determines a residential property's value in today's market, and many of them are used as part of the strategy for the listing price. 

 

1. Appraisal: A licensed appraiser conducts an in-person inspection and analyzes comparable sales, location, condition, and features to produce an official value estimate. Usually required by lenders for mortgage approval.
 
2. Comparative market analysis:  A real estate agent reviews recent sales of similar nearby homes ("comps") to estimate value. Common when pricing a home to sell.
 
3. Broker Price Opinion (BPO): A real estate broker's informal estimate, often used by lenders or investors.
 
4. Automated Valuation Model (AVM): Algorithm-based estimates using public records and market data (e.g., the above, Zillow's "Zestimate"). Fast and free, but less accurate than an appraisal. This is especially true in non-disclosure states such as Utah. 

 

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How is a home valuation calculated?

A home’s value is determined by a number of key factors, including its location, age, size, condition, and any improvements or renovations made to the property, as well as recent sale prices of comparable homes in the area. Beyond the property itself, broader market forces play a significant role, with local conditions, inventory levels, interest rates, and buyer demand all influencing the final figure. As these variables shift over time, so too can your home’s valuation, making it a true reflection of the market at any given moment. It is a blend of art and science. 

How accurate is this home valuation?

Online home valuations are a useful first step, giving you a broad sense of what your property might be worth. That said, they have their limitations. They may overlook recent renovations, distinctive features, historical significance, architectural character, and the subjective ways buyers perceive a home, all of which can meaningfully affect its true market value. For a more precise and complete picture, it is best to schedule a no-pressure consultation. That is also helpful in letting you know what improvements may or may not need to be made to your home.