Home-Value Websites: Be Afraid...Be Very Afraid...

I know how tempting it is: You can log onto Web sites such as www.Zillow.com or www.Cyberhomes.com, punch in your home’s address and instantly get an estimated value of how much your residence is worth.

Problem is, these home-valuation sites, as popular as they may be, might not be entirely accurate.

The Scream PictureA report released last week by the Associated Press says that sites such as Zillow.com often come up with value estimates that are divorced from realty. The problem is that these sites rely on computer-generated models to estimate the value of homes. That’s usually good. But in many instances, the computer models don’t have enough information to make the right valuation.

For instance, the models don’t account for the condition of homes. They don’t account for any improvements their owners might have made. Maybe your home has exquisite landscaping or a newly finished basement. Doesn’t matter. The home-valuation sites won’t factor those improvements into their calculations. This means that the home-value price you receive when you type in your address might be wildly flawed.

The best way to accurately determine the value of your house is to hire a skilled real estate agent who knows the ins and outs of your market. Agents can factor in the intangibles: Maybe your house sits on a desirable corner lot. Maybe its style is one of the most sought-after in your neighborhood. Maybe those El tracks down the block will actually lower the price of your condo.

See? There are an endless number of variables for homeowners to consider, variables that the computers at Zillow and CyberHomes won’t necessarily catch.

The home-valuation sites are fine for laughs, or to get a rough – sometimes very rough – estimate of what your home might be worth. But for serious pricing decisions, stick with a human being.