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Appraisals are as much art as science

The number of home valuation Web sites continues to grow. 

A simple Google search for "How much is my home worth?" shows 119,000 results and seems to get larger month-over-month.

For home sellers, these programs can give a false sense of security (or insecurity!) about at what price a home should be listed for sale.

Computer programs can never replace the role of licensed home appraisers and that's because valuing a home is not as simple as providing some inputs (traits) in order to get some output (value).  There is a "fuzzy logic" that computer programs just can't produce in the same way that appraisers and real estate agents can.

Even with tax records, recent sales data, and a full description of a property, valuing a home is as much "art" as "science". 

There are "human" considerations that include neighborhood quality and curb appeal that a computer can't measure.  Nor can a program take into account how a kitchen may require $20,000 worth of work to bring it "up-to-date" or inline with neighbors' homes.

Besides, the real value of a home is what somebody is willing to pay for it.  Therefore, you can never truly know what a home is worth until it has sold.

So, while automated valuation tools are a good start to finding a home's value, they're not equipped to finish the job. 

(Image courtesy: Kirchoff Appraisals)