Key Takeaways
- Expert insights on how much is my house worth? 5 methods to find your home's true value
- Actionable strategies you can implement today
- Real examples and practical advice
How Much Is My House Worth? 5 Methods to Find Your Home's True Value
Knowing what your home is worth isn't just trivia — it affects real decisions. Should you refinance? Can you drop PMI? Is it time to sell? Are you paying too much in property taxes?
The problem is that your home's value isn't a single fixed number. It depends on who's asking, why they're asking, and which method they use. A Zillow estimate might say $450,000 while an appraiser says $420,000 and a buyer offers $465,000. All three can be "right" in their own context.
This guide walks you through five methods to determine your home's value, explains how accurate each one really is, and helps you pick the right method for your situation.
Method 1: Online [Home Value](/blog/appraisal-process-explained) Estimators (AVMs)
What it is: Automated Valuation Models (AVMs) are algorithms that estimate your home's value using public data — tax records, recent sales, listing prices, and property characteristics.
Popular tools:
- Zillow Zestimate — the most well-known
- Redfin Estimate — tends to be slightly more accurate in markets where Redfin has agents
- Realtor.com — uses multiple data sources
- Eppraisal and Chase Home Value Estimator
How to use them:
- Go to any of the sites above
- Type in your address
- Get an instant estimate
That's it. Takes about 30 seconds.
Accuracy: ±5% to ±15%, depending on your market and property type.
Here's what that range actually means in dollars:
| Home Value | ±5% Range | ±15% Range |
|---|---|---|
| $300,000 | $285,000–$315,000 | $255,000–$345,000 |
| $500,000 | $475,000–$525,000 | $425,000–$575,000 |
| $750,000 | $712,500–$787,500 | $637,500–$862,500 |
Zillow itself reports that its Zestimate has a median error rate of about 2.4% for on-market homes but 7.5% for off-market homes. That gap matters — if you're not actively selling, the estimate is less reliable.
When AVMs are least accurate:
- Rural properties with few comparable sales
- Unique homes (unusual architecture, very large lots, historic properties)
- Recently renovated homes (algorithms can't see your new kitchen)
- Markets with rapid price changes
- Multi-family or mixed-use properties
Best for: Getting a quick ballpark before diving deeper. Checking multiple AVMs and averaging them improves accuracy.
Pro tip: Check at least three different AVMs and note the range. If Zillow says $425,000, Redfin says $440,000, and Realtor.com says $430,000, you're probably somewhere in the $425,000–$440,000 range. If one says $400,000 and another says $480,000, you need a more precise method.
Method 2: Comparative Market Analysis (CMA)
What it is: A CMA is a report prepared by a real estate agent that compares your home to similar properties that recently sold, are currently listed, or were listed but didn't sell in your area.
How it works:
A good CMA looks at "comps" — comparable properties — and adjusts for differences. Here's the logic:
- Find similar homes that sold within the last 3–6 months within about a half-mile to one-mile radius
- Match key features: square footage (within 10–20%), bedrooms, bathrooms, lot size, age, condition
- Adjust for differences:
- Extra bathroom → add approximately $10,000–$25,000 (varies by market)
- Extra 200 sq ft → add approximately $20,000–$60,000 (varies by market)
- Pool → add approximately $10,000–$30,000 (depends on region — pools add more value in Arizona than Minnesota)
- Busy road vs. quiet street → subtract approximately $10,000–$20,000
The DIY version:
You can do a basic CMA yourself:
- Go to Zillow, Redfin, or Realtor.com
- Search "recently sold" homes near your address
- Filter for homes similar to yours (size, beds, baths, year built)
- Look at 3–5 recent sales
- Adjust mentally for differences
Example calculation:
Your home: 3 bed / 2 bath, 1,800 sq ft, updated kitchen, no pool
| Comp | Sale Price | Sq Ft | Beds/Baths | Notes | Adjusted Value |
|---|---|---|---|---|---|
| 123 Oak St | $440,000 | 1,750 | 3/2 | Similar condition | $445,000 (+$5K for 50 more sq ft) |
| 456 Elm Ave | $460,000 | 2,000 | 3/2 | Has pool | $440,000 (−$20K for pool you don't have) |
| 789 Pine Dr | $425,000 | 1,800 | 3/1.5 | Outdated kitchen | $445,000 (+$20K for your updated kitchen) |
Average adjusted value: $443,000
Accuracy: ±3% to ±8%. More accurate than AVMs because a human is interpreting the data.
Cost: Usually free. Most real estate agents will prepare a CMA at no charge, hoping you'll hire them if you decide to sell.
Best for: [Homeowners](/blog/home-insurance-savings) considering selling, or anyone who wants a more accurate estimate than online tools without paying for an appraisal.
Method 3: Professional Appraisal
What it is: A licensed appraiser physically visits your home, measures it, evaluates its condition, researches comparable sales, and produces a formal valuation report.
What happens during an appraisal:
- Exterior inspection — lot size, condition, curb appeal, neighborhood
- Interior walkthrough — room count, square footage verification, condition of finishes, systems (HVAC, plumbing, electrical), any updates or damage
- Comparable sales research — similar to a CMA but with stricter standards and formal adjustments
- Report generation — a 10–30 page document with the appraiser's opinion of value, supported by data
The whole visit takes 30–60 minutes. The report typically arrives within 1–2 weeks.
Accuracy: ±1% to ±5%. This is the gold standard.
Cost: $350–$600 for a typical single-family home. Can be $600–$1,000+ for luxury homes, rural properties, or complex situations.
When you need one:
- Refinancing — your lender will require it
- Buying — the buyer's lender orders one
- Removing PMI — your servicer may require it (see our PMI removal guide)
- Divorce or estate settlement — courts and attorneys rely on appraisals
- Property tax appeal — a formal appraisal strengthens your case
- Selling without an agent — if you're going FSBO, an appraisal gives you a defensible price
Best for: Any situation where money is actually changing hands or legal decisions depend on the value.
Pro tip: You can order your own appraisal anytime. You don't need to be buying or selling. If you're curious and want the most accurate answer, this is it.
Method 4: Property Tax Assessment
What it is: Your local tax assessor determines your property's "assessed value" for the purpose of calculating property taxes. This value is public record.
How to find it:
- Search "[your county] property tax records" or "[your county] assessor"
- Look up your address or parcel number
- Find the "assessed value" or "market value" on your tax record
Important distinction: In many states, the assessed value is NOT the same as market value.
- Some states assess at 100% of market value
- Others assess at a percentage (e.g., 80%, 50%, or even 10% of market value)
- Assessments may lag behind the market by 1–3 years
The formula to estimate market value from assessed value:
Market Value = Assessed Value ÷ Assessment Ratio
Example: Your assessed value is $320,000 and your state assesses at 80% of market value.
$320,000 ÷ 0.80 = $400,000 estimated market value
How to find your assessment ratio: Search "[your state] property tax assessment ratio" or call your county assessor's office.
Accuracy: ±10% to ±25%. Tax assessments are the least accurate method for determining current market value, but they're useful as one data point.
Cost: Free — it's public information.
Best for: A rough sanity check, or as a starting point for a property tax appeal.
Method 5: The FHFA House Price Index Calculator
What it is: The Federal Housing Finance Agency (FHFA) tracks home prices across the country using data from Fannie Mae and Freddie Mac mortgages. Their free calculator lets you estimate how much your home's value has changed since you bought it.
How to use it:
- Go to FHFA HPI Calculator
- Enter the state, metro area, and quarter you purchased your home
- Enter your purchase price
- Select the current quarter
- Get an estimated current value based on average price changes in your area
Example:
- You bought for $350,000 in Q1 2020 in the Phoenix metro area
- The FHFA index shows prices in Phoenix increased approximately 55% from Q1 2020 to Q1 2026
- Estimated current value: $350,000 × 1.55 = $542,500
Accuracy: ±5% to ±15%. This tells you how your market performed, not how your specific home's value changed. If you made major improvements (or let things deteriorate), your actual value will differ.
Cost: Free.
Best for: Estimating equity growth, especially if you've owned for several years and want to see how much your market has appreciated. Also useful for estimating whether you've hit the 20% equity threshold to [remove PMI](/blog/mortgage-pmi-removal-guide).
Accuracy Comparison At a Glance
| Method | Accuracy | Cost | Time | Best For |
|---|---|---|---|---|
| Online AVMs | ±5%–15% | Free | 30 seconds | Quick ballpark |
| CMA (agent) | ±3%–8% | Free | 1–3 days | Pre-listing, curiosity |
| Professional Appraisal | ±1%–5% | $350–$600 | 1–2 weeks | Refinance, legal, PMI removal |
| Tax Assessment | ±10%–25% | Free | Instant (public record) | Tax appeals, rough check |
| FHFA Calculator | ±5%–15% | Free | 2 minutes | Equity tracking, market trends |
Which Method Should You Use?
"I'm just curious" → Start with 2–3 online AVMs. Average them.
"I'm thinking about selling" → Get a free CMA from a local agent. It costs nothing and gives you a much better picture than online tools.
"I want to refinance" → Your lender will order an appraisal. But check AVMs and the FHFA calculator first — if your home hasn't appreciated enough, you might save the application fee by waiting.
"I want to remove PMI" → Check the FHFA calculator to estimate your equity. If you're close to 20%, it may be worth paying for an appraisal. Read our complete PMI removal guide for exact steps.
"I think my property taxes are too high" → Compare your tax assessment to CMA results and online AVMs. If the assessed value is significantly higher than market value, you may have grounds for an appeal.
"I'm going through a divorce or estate settlement" → Get a professional appraisal. Both parties should agree on the appraiser in advance.
5 Things That Increase (and Decrease) Your Home's Value
Increases value:
- Kitchen and bathroom remodels — the highest-ROI improvements (typically 60–80% return)
- Additional square footage — finished basements, room additions
- Energy efficiency — new windows, solar panels, insulation
- Curb appeal — landscaping, exterior paint, new garage door (one of the highest-ROI improvements)
- Location changes — new school ratings, nearby development, reduced crime
Decreases value:
- Deferred maintenance — leaky roof, old HVAC, foundation issues
- Over-[improvement](/blog/heloc-vs-home-improvement-loan) — the nicest house on the block doesn't recoup its cost
- Environmental hazards — lead paint, asbestos, flood zone designation
- Neighborhood decline — rising crime, school rating drops, commercial encroachment
- Market conditions — rising interest rates reduce buyer purchasing power
The Bottom Line
Your home's value is ultimately what a qualified buyer is willing to pay for it on any given day. Every method above is an estimate of that number.
For the most important financial decisions — selling, refinancing, divorce, estate planning — invest in accuracy. A $400 appraisal that gets you a $50,000 better refinance deal or helps you drop $200/month in PMI pays for itself many times over.
For everything else, start free. Check multiple online tools, understand their limitations, and use the number as a starting point for whatever decision you're making.
Your home is likely your largest asset. Knowing what it's worth — really worth — is one of the most practical things you can do as a homeowner.
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