What’s My Home Really Worth? How to Understand Market Value

If you’ve ever looked up your home on Zillow or Redfin and thought, “That can’t be right,”—you’re not alone. Online home values are often misleading. So how do you know what your home is really worth?

Let’s break down what goes into determining true market value, and how to avoid leaving money on the table.

1. Market Value vs. Zestimate: What’s the Difference?

Automated estimates like Zillow’s “Zestimate” are based on algorithms that don’t see inside your home. They pull from public data, but they miss important details like:

• Recent upgrades

• Condition of the property

• Neighborhood microtrends

• Lot views, layout, and curb appeal

A professional Comparative Market Analysis (CMA) gives you a much more accurate picture.

2. How Agents Determine Value

Real estate agents compare your home to recently sold properties that are:

• Nearby (within 1–2 miles)

• Similar in size, condition, and style

• Sold within the past 3–6 months

They adjust for differences—like a finished basement or renovated kitchen—to estimate what buyers are likely to pay right now, not six months ago.

3. Timing Plays a Big Role

Market value isn’t just about your house—it’s about what buyers are willing to pay today. That depends on:

• Interest rates

• Inventory levels

• Seasonality

• Buyer demand in your area

A home that was worth $500K last spring may be worth $475K—or $525K—today.

4. Your Emotions Don’t Add Value

You may love your home. You may have raised your kids there. But buyers are looking at it through a different lens. They’re comparing features, price per square foot, and neighborhood appeal—not memories. That’s why objective pricing is critical.

Final Thoughts:

Pricing your home right from the start is one of the most important factors in getting it sold. Go too high, and you risk sitting on the market. Go too low, and you leave money behind. A local real estate expert helps you find that sweet spot.

📈 Want to know what your home is actually worth in today’s market? I’ll show you how we calculate it—and how to use it to your advantage.