The most direct way to find your home's value

The fastest way to get a rough estimate is to search your address on Zillow, Redfin, or Realtor.com. These sites pull data from recent sales in your area and show you what similar homes sold for. The estimate appears within seconds and costs nothing. It is not official — a lender or tax assessor will not use it — but it gives you a starting point.

If you want something closer to what a lender would accept, you need a professional appraisal. An appraiser visits your home, measures it, checks its condition, and compares it to recent sales of similar homes in your neighbourhood. An appraisal typically costs between $300 and $700 and takes one to two weeks. You will need one if you are refinancing a mortgage or applying for a home equity loan.

Your property tax assessment is another number to check. Your county assessor's office has estimated your home's value for tax purposes. You can find this on your property tax bill or by searching your county assessor's website with your address. This value is often lower than market value because assessors use different methods and update less frequently.

Key Takeaways

  • Online estimates from Zillow, Redfin, or Realtor.com are free and instant but are not official valuations.
  • A professional appraisal costs $300 to $700 and is required by lenders for mortgages and home equity loans.
  • Your county assessor's estimated value is public record and available on your property tax bill or the assessor's website.
  • Recent sales prices of homes similar to yours in your neighbourhood are the most reliable basis for any estimate.
  • Your home's value changes based on condition, location, local market trends, and what comparable homes have sold for recently.

What a real estate agent's comparative market analysis shows

If you are thinking about selling, a real estate agent will prepare a comparative market analysis (CMA) at no cost. The agent pulls recent sales of homes similar to yours — same size, age, condition, and neighbourhood — and shows you what they sold for. A CMA is more detailed than an online estimate because the agent knows the local market and can explain why certain homes sold above or below asking price.

The agent's estimate is still not binding, but it is based on actual transactions rather than an algorithm. If you are not ready to sell, you can ask a local agent for a CMA just to see what your home might be worth. Many agents offer this as a way to build a relationship with potential future sellers.

Why your home's value matters for different reasons

If you are refinancing a mortgage, your lender will order an appraisal to make sure the home is worth at least what you owe. If you are taking out a home equity line of credit or home equity loan, the lender uses your home's value to decide how much you can borrow. If you are paying property taxes, your county assessor's value determines your bill.

If you are selling, the market value — what a buyer will actually pay — is what matters. If you are buying, you want to know whether the asking price is fair compared to recent sales. If you are divorcing or settling an estate, you may need an official appraisal to divide assets fairly.

How to read an online estimate and what it does not tell you

Online estimates come with a range, not a single number. Zillow calls its estimate a "Zestimate"; Redfin calls it a "Redfin Estimate." Both sites show you the estimate, the range around it, and the date it was last updated. The estimate is based on public records, recent sales, and the site's algorithm — but it has not seen inside your home and does not know its actual condition.

A home in excellent condition with recent renovations will be worth more than the estimate. A home that needs a new roof, has outdated plumbing, or has structural issues will be worth less. Online estimates also lag behind fast-moving markets. If your neighbourhood is changing quickly, the estimate may be weeks or months out of date.

Use the online estimate to get a ballpark figure and to see what similar homes have sold for. Do not use it to make a financial decision — refinancing, borrowing, or selling — without getting a professional appraisal or CMA first.

What comparable sales tell you about your neighbourhood

The most reliable way to think about your home's value is to look at what homes like yours have actually sold for in the last three to six months. Search your address on Zillow or Redfin and scroll down to "Zestimate" or "Price History." You will see a list of recent sales in your area with the sale price, sale date, and the home's size and age. Homes that sold longer ago are less useful because the market may have changed.

Pay attention to homes that are similar to yours in size, age, and condition. A four-bedroom home that sold six months ago for $350,000 tells you more than a two-bedroom that sold a year ago. If you see a home that sold for much less than you expected, click on it to see why — it may have sold at a foreclosure auction or in poor condition.

When you need a formal appraisal instead of an estimate

A formal appraisal is required if you are refinancing a mortgage, taking out a home equity loan, or applying for a home equity line of credit. Your lender will order the appraisal and send an appraiser to your home. You will receive a written appraisal report that includes the appraiser's estimate of value, the homes used for comparison, and notes on your home's condition.

You can also order an appraisal on your own if you want an official valuation for insurance, estate planning, or divorce proceedings. Contact a local appraiser directly — search "certified appraiser" and your county name online. Ask whether they are certified by your state (requirements vary by state) and what they charge. Most appraisers will give you a quote over the phone based on your home's size and age.

How property tax assessments work and why they differ from market value

Your county assessor estimates your home's value every one to five years (the frequency varies by state) and uses that estimate to calculate your property tax bill. The assessor's value is often lower than what your home would sell for on the open market because assessors use a different method and may not update as often as the market changes.

You can find your assessment on your property tax bill or by visiting your county assessor's website and searching your address. Most assessor websites are free and public. If you think your assessment is too high, you can file an appeal — the process and deadline vary by county. You will need to show the assessor that your home is worth less than the assessment, usually by providing recent sales of comparable homes.

Frequently Asked Questions

Is the Zillow estimate accurate?

Zillow's estimate is a starting point, not a may provide. It is based on public records and recent sales, but it has not seen your home's actual condition. In stable neighbourhoods with many recent sales, the estimate is often within 5 to 10 percent of actual value. In neighbourhoods with few sales or rapid changes, it can be off by much more.

Do I need an appraisal to sell my house?

No. You need a real estate agent's comparative market analysis or an online estimate to price your home for sale. A lender will order an appraisal only if a buyer is getting a mortgage. If you are selling for cash, no appraisal is required.

How often does my home's value change?

Your home's value changes as the local market changes, as your home ages or is improved, and as comparable homes sell. In a stable market, value may shift a few percent per year. In a fast-moving market, it can change month to month. Renovations, major repairs, or damage can shift value significantly.

Can I use an online estimate to refinance my mortgage?

No. Your lender will order a professional appraisal. The appraisal determines whether your home is worth enough to refinance and how much you can borrow. An online estimate is not accepted by lenders.

What if my appraisal comes in lower than I expected?

If an appraisal is lower than you anticipated, you can ask the appraiser to reconsider if you believe there was an error. You can also order a second appraisal, though you will pay for it yourself. If you are refinancing and the appraisal is too low, you may not be able to refinance at the amount you wanted.