What Is My Home Worth? How to Read the Number

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Last updated: Jul 30, 2026

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What Is My Home Worth? How to Read the Number

Summary

An online estimate is a starting point, not a price. Here's what actually sets your home's value — comps, condition, and timing — and how to get a real number.

Type your address into any real-estate site and you'll get an instant "value" in seconds. It's a fine starting point — and a terrible place to stop. That number is a computer's guess, not a price, and treating it as gospel can cost you real money whether you're selling, refinancing, or just curious. Here's what actually determines what your home is worth.

Automated estimates are a guess, not an appraisal

Online home-value tools (often called AVMs, or automated valuation models) run public records and past sales through an algorithm. They're useful for a rough range, but they're blind to the things that most affect price. A model can't see that you renovated the kitchen, replaced the roof, or that a busy road runs behind the backyard. That's why two identical-looking homes can carry the same online estimate and sell tens of thousands of dollars apart. Read the number as a wide range, never as a listing price.

Comps are what actually set the price

Real value comes from comparable sales — "comps." These are similar homes near you that actually sold in the last few months, adjusted for differences in size, condition, and features. Not list prices, not what a neighbor hopes to get — closed sales. A local agent pulls real comps and reads the nuances a model can't: which street is quieter, which school boundary buyers pay up for, how fast homes like yours are moving right now. That local read is the difference between a number and a price.

The things that move your number

  • Location and lot — the same house is worth more on a quiet street than a busy one, and corner lots, views, and yard size all count.
  • Condition and updates — kitchens, baths, roof, and mechanical systems move the needle most; cosmetic freshness helps too.
  • Size and layout — square footage, bedroom and bath count, and a functional floor plan.
  • Market timing — inventory, buyer demand, and mortgage rates shift prices month to month.
  • Pricing strategy — the first two weeks on market draw the most attention, so pricing right from day one often nets more than starting high and cutting later.

Estimate, appraisal, and market value aren't the same

Three different numbers get confused constantly. An online estimate is an algorithm's rough guess. An appraisal is a licensed professional's opinion of value, usually ordered by a lender to protect the loan. Market value is what a real buyer will actually pay today — the only number that matters when you sell, and the one a skilled listing agent is built to find. They can land far apart, which is exactly why the instant estimate is only a starting point.

Selling? Remember the after-tax picture

What your home is worth and what you keep are different questions. Selling costs and, for some sellers, capital-gains tax affect your walk-away number — though many primary-home sellers qualify for a large capital-gains exclusion. This is educational only, not tax advice; the IRS explains the home-sale rules in Topic No. 701, and a tax professional can confirm your situation.

Want a real number? Get a real number from a local agent who'll price your home from actual comps — free, with no obligation and no pressure to list. On Homegrity, sellers are always free, we never take a cut of your sale, and your details are never resold. Get matched with a local agent → To prepare, read the complete home sellers guide and our seller guide, and if commission is on your mind, see how to save on real-estate commission.

Frequently asked questions

Are online home value estimates accurate?

They're a reasonable starting range but not a price. Automated models can't see your home's condition, updates, or exact location quirks, so real values often differ meaningfully from the instant estimate.

What's the difference between an appraisal and a home value estimate?

An online estimate is an algorithm's guess. An appraisal is a licensed professional's formal opinion of value, usually ordered by a lender. Market value — what a buyer will actually pay — can differ from both.

How do agents determine what my home is worth?

They pull comparable sales — similar homes nearby that recently sold — and adjust for size, condition, features, and current market conditions. It's the same foundation an appraiser uses, informed by local knowledge.

Do I have to pay to find out what my home is worth?

No. A local agent will give you a comparative market analysis for free, with no obligation to list. On Homegrity, getting matched with that agent is always free and your information is never resold.

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Frequently asked questions

What does it cost to get matched?
Nothing. You’re never charged to get matched, to see an agent’s record, or to talk to them. We take no cut of your transaction and we don’t charge a referral fee — agents pay us a flat subscription for tools if they want them.
How do you decide which agents to show me?
We order agents on how long they have been licensed and how closely they are placed to your area — never ad spend. As closings and reviews accumulate on the platform they will join that order; today they do not, and we will not claim otherwise. Placement can’t be bought.
Can an agent pay to rank higher?
No. Paid plans add software inside an agent’s dashboard — a CRM, a branded site, content tools. They don’t buy leads and they don’t move anyone up the list.
Will my information be shared?
Not until you pick an agent and ask us to make the introduction. You can get a valuation or browse matches without a single agent seeing your name.
How many agents will I be matched with?
Usually three. Enough to compare approaches and personalities without turning it into a research project.
Am I obligated to work with anyone you show me?
No. You can contact one, all three, or none of them. There’s no contract with us and nothing to cancel.
What if I already have an agent?
Use them. You can still run a valuation or compare carrying costs here for a second opinion, and you’re never obligated to be matched.
How accurate is the home value estimate?
It’s built from recent comparable sales near you rather than a national model, and it shows you which sales drove the number so you can check the reasoning. Treat it as a starting point — an agent will refine it after seeing the home.
How is that different from other online estimates?
Most public estimates are a national algorithm applied to your ZIP code. Ours is comp-driven and shows its work, so you can tell whether the sales behind it actually resemble your home.
What is the difference between list price and true monthly cost?
List price is what a seller is asking. True monthly is what the home costs you to hold once property taxes, insurance, HOA dues and the payment at current rates are counted. Two homes at the same asking price can differ by hundreds a month.
How much do I need for a down payment?
It depends on the loan program. Conventional loans often start around 3–5% for qualified buyers, FHA around 3.5%, and VA and USDA can go to zero for those who qualify. Less than 20% down generally means mortgage insurance until you build equity.
What is a debt-to-income ratio and why does it matter?
It’s your monthly debt payments divided by your gross monthly income. Many conventional programs look for total debt at or below roughly 43%, though this varies by program and by the rest of your file.
Should I get pre-approved before I start looking?
Yes, in most markets. A pre-approval tells you your ceiling and tells sellers you’re credible. Treat the number as a ceiling rather than a target — what you qualify for and what you can comfortably carry are rarely the same.
How long does it take to buy a home?
From accepted offer to keys is commonly 30–45 days with financing, faster with cash. The search itself varies enormously with inventory and how specific your requirements are.
How long does it take to sell?
It depends on your market, your price and the season. Your agent should be able to tell you the recent days-on-market for homes like yours, which is a far better guide than any national average.
What does an agent’s commission cover?
Pricing, preparation, marketing, showings, negotiation and the transaction management that gets you to closing. Commission is negotiable and is agreed between you and your agent — we’re not party to it.
Do I have to pay a commission as a buyer?
How buyer-side compensation works changed recently and now varies by market and by agreement. Your agent must put their fee in writing with you before showing homes, so ask early and get it in the agreement.
Should I sell before I buy?
It’s a cash-flow question more than a market question. Selling first is safer financially but can leave you renting; buying first is smoother logistically but means carrying two payments if your sale is slow.
What should I fix before listing?
Usually the cheap, visible things: paint, lighting, landscaping, decluttering. Big renovations rarely return their cost at sale. An agent who works your street can tell you what buyers there actually notice.
Do I need a home inspection?
Almost always worth it, even in a competitive market. An inspection is information — you can still choose to proceed, but you’ll proceed knowing what you’re taking on.
What are closing costs?
The fees to complete the transaction: lender charges, title and escrow, recording, prepaid taxes and insurance. They commonly run a few percent of the purchase price and vary a lot by state.
How do rental applications work?
Landlords and management companies set their own screening criteria and fees. Requirements differ building to building, so knowing what a specific landlord wants before you apply is most of the battle.
Do you charge renters anything?
No. We don’t charge to search or to get matched. Landlords often charge their own application or screening fee, and who pays the rental agent’s fee at signing depends on your market and the building.
Who do I contact if something goes wrong?
Reach us at [email protected]. We’re a matching service rather than a brokerage, so we’re not party to your transaction — but we do want to know when a matched agent isn’t performing.

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