Automated Valuation Models (AVMs) such as Zillow and Redfin determine a value based on your square footage, the sales price and price per square foot of homes that have sold nearby. However, even in a neighborhood where all the homes were built by the same builder at the same time, there are a wide variety of variables which cause the current market price to rise or fall.
For example, say your home and your neighbor’s homes were built at the same time by the same builder. You have updated the kitchen, flooring, added a deck, and have properly maintained your home, but the AVM probably doesn’t have this information. Yet the AVM may value these the same.
A real estate market professional will take these factors into account in order to provide you with a realistic price range for your home.