How do you know whether a valuation of your Dallas home is accurate?
Check six things: whether it uses closed sales of similar homes nearby, whether those sales are recent, whether the adjustments are explained, whether the person valuing the home has seen it, whether the number is a range with reasoning, and whether you can see the sources. A valuation that cannot answer those six questions is an opinion, not an analysis.
Texas is a non-disclosure state, which means sale prices are not recorded in public deed records. That makes the quality of the data behind a valuation even more important.
1. Does it use closed sales?
A listing price is what a seller hopes to get. A closed sale is what a buyer actually paid. A solid valuation rests on closed sales, supported by pending and active listings as context. Ask to see the list of sales used, with addresses, dates, prices, and the size of each home.
2. Are the sales recent and nearby?
Markets shift. A sale from many months ago may not reflect today. Nearby matters too, but only when streets are alike. Two homes four blocks apart can have different lots, noise, and school assignment. Ask why each comparable was chosen, and why others were left out.
3. Are the adjustments explained?
No two homes are identical, so a valuation adjusts for differences in size, lot, updates, and condition. Ask what the adjustments were and how they were set. Be cautious when an adjustment is large, since that suggests the comparable is not very comparable.
4. Has someone seen the home?
An online estimate cannot know your kitchen was renovated or your foundation was repaired. A broker or appraiser who walks the home can account for those details. Ask whether the valuation was prepared with a visit, and what condition was assumed.
5. Is it a range, with reasoning?
Real markets produce ranges. A valuation that gives a single number with no explanation hides its uncertainty. A good one states a range, the most likely point within it, and the assumptions behind both.
6. Can you see the sources?
Ask where the data comes from. In North Texas, the main source for closed sales is the NTREIS multiple listing service. Appraisal district records are useful for lot size and square footage but are not sale prices. A valuation that cites no source should raise a question.
Which type of valuation do you need?
Type | What it is | When it fits |
|---|---|---|
Online estimate | Automated model | A first, rough look |
Comparative market analysis | A broker's review of comparable sales | Planning to sell or buy |
Broker price opinion | A broker's written opinion | Quick decisions, some business uses |
Licensed appraisal | A Texas-licensed appraiser's formal opinion | Lending, estates, legal matters |
How does an online estimate compare?
Automated estimates are fast and free, and they can be a useful starting point. Their weakness in Texas is the lack of public sale prices, which means models rely on listing data and other signals. Treat the number as a range that you check against real sales.
What should you do with the number you have?
Put it next to two or three closed sales you can see. If the valuation is far from what similar homes recently sold for, ask why. Sometimes there is a good reason, such as a renovation or an unusually large lot. Sometimes the estimate is wrong.
How can we help?
We prepare written valuations for Dallas homeowners with the sales, adjustments, and reasoning shown, so you can check our work. If you would like a second look at a number you have been given, reach out to The Agency Dallas through txrootsglobalre.com and we will walk through it with you.
Frequently asked questions
Is a Zestimate accurate for a Dallas home?
It can be a rough guide, but it is not an appraisal. Because Texas does not publicly record sale prices, ask a local broker to compare it to closed sales.
How long is a valuation good for?
It reflects the date of its data. In a fast-moving market it can go stale within weeks. In a slower market it may last longer. Ask for the effective date.
Do I need a licensed appraisal to list my home?
Usually no. Most sellers work from a broker's comparative market analysis. A licensed appraisal is typically needed for lending, estates, or legal matters.
Damon Williamson, Broker/Owner, The Agency Dallas. Licensed Real Estate Broker, State of Texas. Equal Housing Opportunity. Texas Real Estate Commission Information About Brokerage Services and Consumer Protection Notice are available at trec.texas.gov. This is not intended as a solicitation of property currently listed for sale.
