How much is my house worth?

Often called an automated valuation model or AVM, this type of online tool helps consumers figure out how much a particular property is worth. They can be used by either homeowners or home shoppers who want to check the value of a house that catches their eye — typically all you have to do is type in the address. AVMs use computer algorithms that factor in various data points — like recent sale prices in the area, square footage, lot size, bedroom/bathroom count and more — to assign an approximate value to a home. Each algorithm is different, so each tool will likely give you a slightly different value; these are estimations, not guarantees.

There are many ways to find out your home’s value. Online estimation tools (like this one) are a popular option and a good starting point. Another way is to ask your real estate agent to prepare a comparative market analysis, which will consider local housing market factors and how much other, similar homes in your area have recently sold for. (This is also referred to as “comps.“) The most accurate option is likely to have the home professionally appraised, which will cost a few hundred dollars.

Your home is probably your single biggest financial asset, and knowing what it’s worth can help you make all sorts of important decisions. If you’re thinking of selling your house, knowing its value is crucial to set an appropriate asking price — and to help you know how much you’ll have to work with when buying your next home. But knowing your home’s value is important even if you have no intention of selling. For example, it can help you determine how much equity you’ve built so far, which is crucial if you want to borrow against it for a home equity loan or line of credit. In addition, your property taxes are based on the assessed value of your home. If you suspect you’re being overcharged, knowing its market value can help you make the case.

Bankrate’s tool utilizes six different prediction sub-models, blended together using machine learning to provide a single, unbiased estimate of your home’s likely market value. We use dynamic search criteria to select a set of comparable properties, assigning a score to each one based on its similarity to your home. Our models utilize the latest technology to leverage large amounts of data, including analyzing comparable properties; adjusting price based on features; and adjusting for tax assessment values.

We utilize the latest technologies and make every effort to provide you with an accurate, unbiased valuation of your home. However, all online home valuation tools are only as good as the data available. Each tool uses a different, proprietary algorithm, and each one may give you a slightly different price. For the most accurate valuation possible, it’s best to hire a licensed, professional home appraiser.

In many real estate markets, a home’s value increases on its own over time through a process known as appreciation. However, there are many things you can do to speed the process along. One of the easiest ways to boost your home’s value is to perform a thorough cleaning and decluttering. You might even spring for professional staging — the more you show off the space to its full potential, the more appealing it will be to potential buyers. Another inexpensive way is to spruce up the curb appeal outside to make a good first impression. Major renovation projects can up your home’s value as well, of course, but they are expensive and time-consuming, and many do not recoup their cost at resale. So consider your remodeling projects carefully.

No, an online home valuation tool is not the same thing as a professional home appraisal. Online tools can give you a good ballpark idea of what your home might be worth, based on publicly available data — but each algorithm is only as good as the data available, and you will get different results from different tools. An appraisal, however, involves a licensed professional appraiser making an in-person visit to the home and property, adding a layer of human knowledge and expertise to the public data. Appraisers take into account factors that algorithms can’t. When a buyer applies for a mortgage loan, lender will require a professional appraisal to ensure they aren’t loaning the borrower more than the house is worth.

Yes. Real estate agents can look at comps — or similar homes nearby that have recently sold — to assess what your home is worth based on what other, similar homes in the area have sold for. Most agents will compile a thorough comparative market analysis, or CMA, for their clients that details comparable sales to make a data-based, educated guess about a home’s value. The CMA will take into account factors like the number of bedrooms and bathrooms, square footage, lot size, condition, age and special amenities, such as a swimming pool or tennis court. It also factors in the local market conditions.