How Do I Know What My Home Is Worth?

If you're thinking about selling your home, refinancing, opening a home equity line of credit, or simply trying to understand how much wealth you've built, there's a question that usually comes first:

How much is my house worth?

It's a simple question.

The answer is not always so simple.

Today, you can type your address into a website and get a home value estimate in seconds. It's convenient, and these tools can be a helpful place to start. But if you're making an important financial decision based on that number, you probably want to know how much confidence you should actually have in it. And that's where things get interesting.

How Much Is My Home Worth?

The quick answer is: your home is worth what a buyer is willing to pay for it in today's market.

But determining that number takes more than looking at the house next door or entering your address into an online calculator. Your home's value is influenced by the current market, recent comparable sales, supply and demand, your neighborhood, your home's condition, improvements you've made, location, lot, layout, views, natural light, and dozens of other details. And the market is constantly changing.

For example, Minnesota's housing market in July 2026 was becoming more balanced than it had been in recent years. Inventory reached a seven-year high, with 20,084 homes for sale statewide—up 9.1% from the previous year. The Twin Cities had 11,586 homes for sale, up 6.7%. At the same time, the statewide median sales price increased 2.7% to $375,000, while the Twin Cities median increased 3.3% to $408,000.

That's important because it tells us something:

Your home's value isn't determined by one number. It's determined by what's happening around your home right now.

How Redfin and Zillow Value Your Home

If you search "how much is my house worth?" online, you will get dozens of hits, showcasing the top home value estimators. According to NerdWallet, 22% of homeowners in the United States determine the value of their home using this method. The technical term for these tools is "automated valuation model."

Two of the big players in this space are Redfin and Zillow.

These tools leverage the data available from public records, such as tax assessments and property transfers. Using mathematical modeling, these tools aim to predict the value of your home based on the most recent listing prices and sales in your area. And there's nothing wrong with using them. In fact, I think they're useful starting points.

Zillow's Zestimate currently has a national median error rate of 1.83% for homes that are on the market and 7.01% for homes that are off the market. Zillow also explains that the accuracy varies by location and the amount and quality of data available for a particular property.

Redfin's current published figures are similar. Its median error rate is 1.85% for homes that are on the market and 7.26% for off-market homes. Redfin also notes that its estimate is a starting point and is not an appraisal or a substitute for professional pricing advice.

Those numbers are actually pretty impressive. But here's the part I don't want you to miss. A median error rate doesn't mean the estimate for your home will be off by exactly that amount. For example, if you have a $600,000 home and an estimate is off by 7%, that's a difference of about $42,000. That's a pretty big difference if you're trying to decide whether to sell, how much equity you can access, whether you can afford your next home, or whether a particular financial strategy makes sense.  And that's why I think online estimates are helpful—but they shouldn't be the end of the conversation.

An Algorithm Doesn't Know Everything About Your Home

Zillow and Redfin use a tremendous amount of data.

Zillow says its Zestimate incorporates public records, MLS data, user-submitted home details, property characteristics, comparable homes, listing information, market trends, and hundreds of other data points.

Redfin similarly uses hundreds of data points from MLS information, recent sales, neighborhood characteristics, and the property itself.

That's a lot of information. But your home isn't just a collection of data points. Let's say you renovated your kitchen six months ago, but that information isn't fully reflected in the underlying records. Or maybe your home has an exceptional view. Maybe you've created a beautiful outdoor living space. Maybe the home backs up to a wooded area instead of another house. Maybe you've added a bathroom, finished a basement, improved the landscaping, or made other changes that aren't accurately reflected in the data. On the other hand, maybe there are things an algorithm doesn't fully understand about your property that could affect what a buyer is willing to pay. That's where local knowledge becomes important.

Your Neighbor's Sale Doesn't Tell the Whole Story Either

There's another common way homeowners try to determine value. They look at what their neighbor's house sold for. That's understandable. But two houses that look similar from the street can have very different values. One might have a remodeled kitchen and finished basement. Another might have an older roof and original bathrooms. One may have a premium lot with beautiful views. Another may back up to a busy road. One may show beautifully and attract multiple offers. Another may sit on the market because it isn't presented as well. Even small differences can matter. That's why a good comparative market analysis isn't simply a list of houses that sold nearby. It's an effort to understand which homes are actually comparable and how their differences affect value.

The Market Matters, Too

Your home's value is also affected by what's happening in your specific market. And right now, Minnesota is an excellent example of why this matters.

The July 2026 Minnesota housing report shows that inventory has increased substantially while prices are still rising. Buyers have more options and more time to evaluate properties than they have had in years, while sellers are still receiving very close to asking price on average. Statewide, sellers received 98.3% of their list price, while Twin Cities sellers received 99.1%. That creates a more nuanced market. It's not simply a “seller's market” or a “buyer's market” in the way those labels sometimes make it sound. There are different markets within the market. Different price ranges behave differently. Different neighborhoods behave differently. Different property types behave differently. And that's why the value of your home should be based on what is happening around your home—not just what is happening nationally.

Your Home's Value Is More Than a Number

This is where I think the conversation gets really interesting. Let's say we determine that your home is worth $700,000. What does that number actually mean to you? If you owe $400,000, you may have roughly $300,000 in gross equity before selling costs. Now the question becomes:

What could that equity allow you to do?

Maybe you're thinking about moving into a home that better fits your family's needs. Maybe you're considering buying an investment property. Maybe you're wondering whether you could keep your current home as a rental. Maybe you're approaching retirement and want to understand your options. Maybe you want to access some of the equity for another investment. Or maybe you're simply curious because you want to know how much wealth you've built. The value of your home isn't important simply because it's an interesting number. It's important because that number can influence your next decision.

This Is Where Strategy Comes In

I don't want my clients to think about their home as an isolated transaction. Your home is part of your larger financial picture. So when we talk about what your home is worth, I want to understand what you're trying to accomplish.
Are you thinking about selling now?

>Are you considering selling in two years?

>Do you want to move up?

>Are you trying to figure out whether you can afford a second property?

>Do you want to unlock equity?

>Are you simply trying to understand whether staying put or moving makes more financial sense?

The same home can have the same market value but represent very different opportunities depending on the owner's goals. That's why I don't believe in simply giving someone a number and saying, “Your house is worth $X.” The number is the beginning of the conversation—not the end.

What If You're Thinking About Selling?

If you're considering selling, I want to look beyond what an online calculator says.

We'll look at comparable homes, recent sales, current competition, market conditions, your home's condition, improvements, location, and the features that make your property different. Then we'll talk about positioning. Because your home's market value and your listing strategy aren't necessarily the same thing. Pricing too high can cause a home to sit and become stale. Pricing too low can leave money on the table. And pricing isn't simply about choosing a number that feels good. It's about understanding the market and creating a strategy that gives your home the best opportunity to achieve the outcome you want.

What If You're Not Ready to Sell?

You don't have to be. In fact, I think knowing your home's value can be useful long before you're ready to put a sign in the yard. If you're thinking about moving sometime in the next year or two, understanding your equity today can help you make better decisions tomorrow.

Maybe you'll discover you have more options than you realized.

Maybe you'll decide that staying put makes more sense.

Maybe you'll realize that you're in a stronger position to move up than you thought.

Or maybe you'll decide to wait and continue building equity.

There is no prize for moving before you're ready.

The goal is to understand your options so that when the right opportunity comes along, you can recognize it.

Don't Let an Online Estimate Make a Major Decision for You

I like online home valuation tools. They are convenient. They're increasingly sophisticated. And they're a great place to start. But I'd be cautious about using an online estimate as the final answer when you're making a major financial decision.

The current data from Zillow and Redfin actually reinforces that point. Their models can be quite accurate at a national level, particularly when a home is actively listed and there is a lot of current data available. But both companies acknowledge that these are estimates, not appraisals, and accuracy varies by property and location.

Your home deserves more than a number generated by an algorithm. It deserves context. It deserves local market knowledge. And most importantly, it deserves to be considered in the context of your family's bigger goals.

Don't Let an Online Estimate Make a Major Decision for You

I like online home valuation tools. They are convenient. They're increasingly sophisticated. And they're a great place to start. But I'd be cautious about using an online estimate as the final answer when you're making a major financial decision.

The current data from Zillow and Redfin actually reinforces that point. Their models can be quite accurate at a national level, particularly when a home is actively listed and there is a lot of current data available. But both companies acknowledge that these are estimates, not appraisals, and accuracy varies by property and location.

Your home deserves more than a number generated by an algorithm. It deserves context. It deserves local market knowledge. And most importantly, it deserves to be considered in the context of your family's bigger goals.

So, How Do You Really Know What Your Home Is Worth?

Start with the online estimate. Look at recent comparable sales. Pay attention to what's currently on the market. Understand what's happening in your neighborhood. Then bring all of that information together with someone who understands the local market and can evaluate the details an algorithm may not fully capture. But don't stop there. Ask the bigger question:

“What does the value of my home allow me to do next?”

That's the question I love helping my clients answer. Because real estate isn't just about buying and selling houses. It's about making decisions that support your lifestyle today and your financial future tomorrow. Your home may be your sanctuary. It may be where your family gathers and makes memories. And it may also be one of your largest financial assets.

You deserve to understand both sides of that equation.

If you're curious about what your home is worth, you don't have to be ready to sell. Let's start with the numbers, look at the options, and create a clear picture of what your equity could mean for your next chapter. Clarity comes before strategy. And strategy comes before action. That's how you move forward wisely—not hurriedly.