How automated estimates work
Automated valuation models compare recent nearby sales, square footage, bed and bath count, and lot size. They cannot see your kitchen, your roof's age, or the highway behind your fence.
Published median error rates hover around 2–3% for homes currently listed and 6–7% for off-market homes. On a $400,000 house, 7% is $28,000.
What actually sets your number
Three to five closed comparable sales within the last 90 days, within about a mile, adjusted for condition and updates. That's what an appraiser uses and what a good listing agent will walk you through line by line.
Comparing your selling options
Listing on the open market usually nets the most, minus 4–6% in commissions and 1–3% in closing costs, over 30–60 days.
A cash offer closes in 1–3 weeks with no repairs or showings, but typically lands 8–15% below market value. That gap is the price of speed and certainty — sometimes it's worth it, often it isn't.