What Is Your Home Really Worth?
By Lisa Lombardi
Online home-value estimates may provide a useful starting point, but accurately determining what a Silicon Valley home is worth requires far more than an algorithm. DeLeon Realty combines local market expertise with appraisal-based analysis to evaluate each property’s unique characteristics, study the most relevant comparable sales, and determine what buyers are actually likely to pay.
Key Takeaways
- Online Estimates Aren’t the Whole Story - AVMs such as Zillow and Redfin analyze data points like square footage, sales history, and market trends, but they cannot fully account for factors such as architecture, remodeling, views, privacy, lot characteristics, and location.
- Every Property Is Different - Two homes that appear similar on paper can have dramatically different values. This is particularly true in Silicon Valley, where homes, lots, neighborhoods, and surrounding influences can vary significantly from one property to the next.
- Accurate Valuation Requires Analysis - A meaningful Comparative Market Analysis looks beyond averages and price per square foot. DeLeon researches the property, examines relevant market evidence, considers current market conditions, and analyzes the differences between comparable sales and the subject property.
What is your home worth? With online estimates available in seconds, getting an answer has never been easier. Getting an accurate answer, however, is another story.
An Automated Valuation Model, or AVM, uses an algorithm to estimate a property’s value based on public records, MLS information, previous sales, and market trends. Sites like Zillow and Redfin are examples of AVMs. While these tools can provide a useful starting point, they are designed to estimate rather than analyze the market value of an individual property.
A home’s value is influenced by far more than what AVMs measure. Architecture, construction quality, remodeling, lot characteristics, views, privacy, location, outdoor amenities, and surrounding influences can all affect what buyers are willing to pay. Two homes that look nearly identical on paper can sell for millions of dollars apart.
This is especially true in Silicon Valley, where a newly built modern home may sit next to a 75-year-old ranch or a modest home may share a block with a custom estate. One property may have expansive views while another has none. Lots can be flat, sloped, irregular, or configured as flag lots. Understanding these characteristics is where professional analysis becomes important.
A professional agent evaluation is typically called a Comparative Market Analysis, or CMA. A meaningful CMA involves much more than entering a property address into a valuation tool or searching the MLS for homes with similar square footage.
At DeLeon Realty, our approach begins with understanding the property before searching for comparable sales. Our certified residential appraiser, with nearly 25 years of experience, works with our agents to teach them how to identify and analyze the factors that influence value.
The process begins with research, using county and city records, permit history, prior MLS listings, satellite imagery, and zoning, as well as examining its lot, views, privacy, outdoor space, and proximity to traffic or commercial properties.
Only after understanding the property does the search for comparable sales begin. Agents identify the most relevant market evidence and analyze the similarities and differences between each sale and your property. Market conditions also matter since older sales may not reflect today’s market.
The goal is not to average sale prices or apply a price per square foot, but to determine what the available market evidence suggests buyers would likely pay for your property.
Whether preparing to sell, considering a remodel, refinancing, planning your estate, or simply wanting to understand your home’s current value, accuracy matters. In Silicon Valley, a difference of just a few percentage points can represent hundreds of thousands of dollars.
The DeLeon Team combines local market expertise with appraisal-based valuation methods to look beyond the numbers and understand the property, the market, and the factors that influence what buyers are actually willing to pay, helping homeowners understand not just what an algorithm estimates their home is worth, but what their home is really worth.
Interested in learning more? Read the expanded version of this article on our website!
Lisa Lombardi (DRE #02192928) | lisa@deleonrealty.com | 650.543.8559
DeLeon Realty, Inc. | DRE #01903224 | Equal Housing Opportunity
Frequently Asked Questions
What is an AVM?
An Automated Valuation Model, or AVM, uses an algorithm to estimate a property’s value based on information such as public records, MLS data, previous sales, and market trends. Zillow and Redfin are examples of platforms that use AVMs.
What is a Comparative Market Analysis (CMA)?
A CMA is a professional evaluation of a property’s likely market value based on relevant comparable sales and an analysis of the property’s unique characteristics. Unlike an automated estimate, a meaningful CMA involves professional judgment and property-specific research.
Why can two similar homes have very different values?
Factors such as construction quality, remodeling, views, privacy, lot configuration, outdoor space, traffic, and surrounding properties can significantly affect what buyers are willing to pay. In Silicon Valley, these differences can translate into hundreds of thousands or even millions of dollars.
