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While home values have generally increased across the country, there could be factors beyond a homeowner’s control that can cause prices to decline. These could include a downturn in the local economy, impacts from climate change or severe weather or even local political issues. If you can afford to wait out the market rather than selling at a low point, that may be the smartest option. "[E]levated mortgage rates and high home prices have been keeping some buyers on the sidelines this spring," Bright MLS Chief Economist Lisa Sturtevant said in an email. Both companies claim they are highly accurate, with a median error rate of 2.28% for on-market homes for Redfin and a 1.9% error rate for Zillow as of this writing.
How Accurate Are Redfin and Zillow Home Value Estimates?
Remember that your home’s value is determined by a variety of factors – market conditions, the sale price of comparable homes in your area, and the style, size, and age. Ultimately, your home’s value is determined by what buyers are willing to pay. Keeping these six tips on how to determine your home’s value is an integral part of preparing to list your home for sale. Online home valuation estimator tools like the Redfin Estimate and the Zillow Zestimate can be useful for buyers and sellers alike, and both claim to be highly accurate. If you find inaccurate information about your home, you can correct it yourself or submit documentation to the companies so they can update your listing.
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Redfin uses multiple listing service (MLS) data on recently sold homes to determine its value estimates. The Redfin Estimate employs a proprietary algorithm that evaluates hundreds of data points about the market, specific neighborhood, and home features. Once you’ve narrowed down homes in your area to those with similar characteristics, the most important things to look at are sold price, listed price, and days on the market. You should also look at the condition of these homes to see how your home compares. Depending on what features you find in these homes, you may want to consider making updates before listing your home to sell.
What Is the Redfin Estimate?
“Painting, landscaping, switching out old light-switch plates or doorknobs will all pack a punch when it comes to improving your home’s value,” says Rady. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. Redfin Unlimited Liability Company (trade name, Redfin) is a licensed and registered real estate brokerage in British Columbia and Ontario only.
Falling Mortgage Rates Breathe New Life Into Housing Market as Listings, Pending Sales and Price Growth Hit Highest ... - Redfin News
Falling Mortgage Rates Breathe New Life Into Housing Market as Listings, Pending Sales and Price Growth Hit Highest ....
Posted: Fri, 15 Dec 2023 08:00:00 GMT [source]
Zhao added, "My advice for serious buyers who can afford today's costs is to shop for your dream home and accept that this year is probably not the time to find a dream deal." Our affordable lending options, including FHA loans and VA loans, help make homeownership possible. Check out our affordability calculator, and look for homebuyer grants in your area. And from applying for a loan to managing your mortgage, Chase MyHome has you covered. Depending on which projects you choose, this effort doesn’t have to be very expensive.
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Knowing how to determine your home’s value will not only help you decide whether you should sell your home, but it will give you a guideline for the price your home may sell for once listed. Luckily, there are six different ways to help you determine your home’s value. For a valuation of your house that is personalized and takes local market trends into consideration, a real estate agent can help you find a price much more realistic than an online tool. Especially if you live in a fast-changing area—whether it be because of rezoning, new infrastructure, or any other change—this specificity is very important.
How it’s calculated
A professional appraiser’s figure is known as the appraised value and is required by mortgage lenders. The appraised value can relate to the home’s curb appeal, square footage, the condition it’s in, and comparable homes (or “comps”) in your area. The appraised value may or may not align with the market value, depending on the state of the market at the time of listing. As a homeowner, whether you’re preparing to sell, looking to refinance or just curious how much equity you have, you’ll need to have a good idea of how much your home is worth.
Like other estimates, this is not a formal appraisal or substitute for the in-person expertise of a real estate agent or professional appraiser. Reaching out to a local real estate agent who knows your market is another option. Agents can compile a thorough comparative market analysis to arrive at the market value of your home. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products.
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If you're house hunting, the Estimate can predict the final sale price for listings you're interested in. Check out the Redfin Estimate for homes in Atlanta, Austin, Raleigh, Rhode Island, or one of our other 80+ markets across the U.S. The average interest rate on a fixed 30-year home loan rose to 7.1%, marking the first time this year rates have topped 7%, according to Freddie Mac. Meanwhile, the median asking price for U.S. home — what homeowners hope their property will sell for — jumped to a record $415,925 for the four weeks ended April 21, Redfin said.
This will give you an idea of what the going price is for similar homes nearby. It is important to look for homes that are similar in square footage and have comparable amenities to the home you are preparing to sell. Depending on the features your home currently has, looking at homes that are significantly larger or have different amenities may not reflect the value of your home.
The estimates are calculated by a computer based on available data and are not the same as a professional appraisal. Alison is part of the content marketing team and enjoys writing about housing affordability and home interior design ideas. Her dream home is a cottage-style house with a chef’s kitchen and a cozy room to store and play vinyl records. He previously worked as a reporter for the Omaha World-Herald, Newsday and the Florida Times-Union.
According to Zillow, the Zestimate is highly accurate, with a median error rate of 1.9% for on-market homes and 6.9% for off-market ones as of April 6, 2022. If there’s one question most homeowners have asked themselves at least once it’s, “How much is my house worth? ” Whether you’re aiming to figure out what your asking price might be, looking to refinance your house, or you’re just trying to better understand the real estate market in your area, it’s a good idea to figure out the answer. Below, we break it all down with the help of experienced real estate professionals from across the country. To calculate the Redfin Estimate, we combine hundreds of data points about the market, the neighborhood, and the home itself—all to provide you with the most accurate home-valuation tools. Whether you're determining how much house you can afford, estimating your monthly payment with our mortgage calculator or looking for preapproval for a mortgage, we can help you at any part of the home buying process.
If you’ve recently completed renovations, such as redoing the kitchen or bathrooms, you can indicate that. You can also note any special features, such as a pool, finished basement, accessibility additions, or waterfront location. If you're planning to sell, the Redfin Estimate can give you an idea how much you'll get for your home.
There are various ways to get to the bottom of that question, including old-fashioned research, online tools and professional assessments. Some of these options provide more accurate information than others, so let’s take a closer look at all the ways to determine your home’s value. You can obtain more information by checking county and municipal websites for your home’s assessed value.
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