Home Value Search Engines Show Home's Equity

by Center for Personal Finance editors

If you're thinking about sprucing up your house, a home equity loan from your credit union may be just what you need. You can tap the equity in your home via a line of credit or a loan. But how do you know the amount of equity you have available to tap? New Internet home value search engines can help.

Home value estimators generally use public record data, combined with professional appraisal techniques to arrive at a value estimate. For instance, the characteristics of your home such as square footage and number of rooms are compared with recent "comparable sales" in your neighborhood.

Because this method doesn't include a physical inspection, the estimators don't take the place of professional appraisals. No automated valuation system can account for unique locations, curb appeal, or special home improvements, but they can provide a reasonable approximation. For selling a house, you should use a real estate professional or appraiser to establish your asking price.

For all of your home equity needs visit the housing section in Home & Family Finance Resource Center and talk to a loan officer at your credit union.

May 3, 2005