If you’ve ever looked up your home online, you’ve probably seen a number pop up claiming to be your home’s value. But here’s the thing — there’s no single “home value.” In real estate, several different numbers can be used to determine what a property is worth, and they often don’t match. Understanding these differences is key to setting the right expectations when you’re thinking about selling (or buying).
1. Appraised Value
The appraised value is determined by a licensed appraiser, typically hired by a mortgage lender during the home buying or refinancing process. The appraiser examines:
- The home’s size, condition, and features
- Comparable recent sales in the area (“comps”)
- Market conditions at the time
This value is used to make sure the lender isn’t loaning more money than the property is worth. It’s a professional, in-depth evaluation — but it’s still an opinion, and different appraisers may arrive at slightly different numbers.
2. Market Value
The market value is what a buyer is actually willing to pay for your home in today’s market. It’s influenced by:
- Supply and demand in your area
- Your home’s condition and presentation
- Location and neighborhood desirability
Unlike the appraised value, market value is tested in real time — the moment buyers start making offers. In a hot market, market value can easily exceed appraised value if buyers are competing for limited inventory.
3. Online Estimates (Zestimates and Similar Tools)
Websites like Zillow, Realtor.com, and Redfin offer instant home value estimates, often called “Zestimates” or AVMs (Automated Valuation Models). These are calculated using algorithms that analyze publicly available data such as tax records, recent sales, and property characteristics.
While these tools are convenient, they can be wildly inaccurate because they:
- Can’t see your home’s condition or upgrades
- May rely on outdated or incomplete data
- Don’t account for unique features or neighborhood nuances
We’ve seen homes sell far above or below their online estimates — so while they’re a starting point, they’re no substitute for a professional valuation.
Why the Numbers Don’t Match
Each method measures value through a different lens:
- Appraised value: Lender-focused, based on strict criteria
- Market value: Buyer-driven, based on what the market will bear
- Online estimate: Data-driven, but often missing critical context
It’s completely normal for these values to differ — sometimes by tens of thousands of dollars.
The Bottom Line
If you’re curious about your home’s true market value, the best step is to consult a local real estate professional who knows your neighborhood, has access to up-to-date sales data, and can factor in the unique qualities of your property.
At The Craig Hartranft Team, we combine market expertise with real-time data to give you the most accurate picture possible — far beyond what an algorithm can provide.