Unveiling The Accuracy Of The Home Value Estimator Of Bank Of America
Bank of America is a significant player in the financial industry, offering a free home value estimator tool to help homeowners determine their property’s fair market value. However, while the tool compares favorably to other central banks’ home value estimators, such as Chase, it may not be as accurate as real estate websites like Zillow or Redfin.
It’s essential to remember that home value estimators, including Bank of America’s, are unreliable enough to make significant financial decisions, such as setting a list price for your home. However, they can still provide a value estimate of your property’s value.
If you’re looking to use Bank of America’s home value estimator tool, it’s essential to understand how this works and how it compares to other options available to you. Ultimately, it’s always best to seek the advice of a professional real estate agent or appraiser when making significant financial decisions regarding your property.
Bank of America provides a home value estimator, an automated valuation model (AVM), which is one of its home buying and selling tools. This feature enables users to get a free home value estimate for both active and off-market properties within seconds by entering the property address on the bank’s website. No account is required to access this service.
The home value estimate is based on various factors, which include the number of bedrooms, bathrooms, square footage, and recent comparable sales in the area. The estimate consists of an overview of the property, including its type, year of construction, total square footage, county, tax-assessed value, and parcel number. It also includes a chart that details the home’s value history over the past two decades, along with a list of three or more comparable sales with their distance from the subject property, number of beds, baths, square footage, sale price, and sale date.
How Other Home Value Estimators Stack Up
However, like other home value estimators, Bank of America’s home value estimator is not an appraisal and cannot be relied upon as it may not be entirely accurate. The bank disclaimer states, “It is intended to be used to illustrate purposes only and doesn’t confirm actual representation an appraisal or confirmation of actual home value.”
Bank of America offers a home value estimator that provides an overview of a property, including its estimated value based on beds, baths, square footage, and recent comparable home sales. The estimator also includes a chart of the property’s value history over the past 20 years. However, Bank of America’s disclaimer states that the estimator is to illustrative purposes only and won’t confirm actual home value or represent an accurate appraisal.
The estimator also lists recent comparable local home sales closest in size and condition to the evaluated property. Using Google Maps, Bank of America shows the location of each sale and an average sale price.
Value Estimation Example
For example, a 6-bed, 5.5-bath single-family home with 2,909 sq. ft. in Davidson, North Carolina, was evaluated using Bank of America’s home value estimator. Bank of America’s estimate of the property’s value was compared to other sites and the owner’s estimate. According to Zillow, homes in the area have a median value of $633,333.
- Each home selling calculator has different opinions of actual home value; it should not be used in place of a CMA report or appraisal.
- Using public data, we try our best to determine the home’s estimated value. We did not visually inspect the house or consider renovations, repairs, or upgrades.
- Contacting a realtor for a CMA report will be the most accurate estimate. Home value estimators, unlike real estate experts, have the best sales information and will give credit for a home’s upgrades and renovations.
- Consider using several home value estimators to see how your home valuation compares if you’re not yet ready to speak with an agent.
- Getting your free home value estimate from Bank of America
Pros and cons
Bank of America provides a user-friendly and fast home value estimator that offers property information like beds, baths, and square footage. However, the home value estimates may not be reliable as it uses outdated comparable home sales, which do not reflect current market conditions. Unfortunately, Bank of America’s website does not allow homeowners to edit or save the details of their property, and it does not consider any renovations or repairs that may have been made. Therefore, it may provide a lower estimate than the property’s actual value. It is advisable to consult a local realtor for a free CMA report or appraisal to get the most accurate home value estimate.
Comparing Bank of America’s home value estimator to other popular options, such as Zillow, Redfin, PennyMac, and Chase, reveals that Bank of America’s accuracy and features fall short. Zillow’s median error rate of 6.9% on off-market properties allows users to choose their comparable sales. In contrast, Redfin allows users to edit a home’s square footage for an updated home value and has a median error rate of 7.67%. In contrast, Bank of America uses outdated comparables, has no way to edit or save home details, and does not consider home renovations. PennyMac shares many similarities with Bank of America but has outdated comparables and undervalued homes. Chase’s home value estimator is among the worst in the industry, with inaccurate or missing information on many homes tested and often underestimating homes by tens of thousands of dollars.
While the Bank of America home value estimator is fast and easy to use, it is not the most accurate or reliable option. For the most precise estimate, consulting with a local real estate agent for a free CMA report or appraisal is best.
