Homebot is one of many automated tools that help assess the value of properties around the U.S. It’s widely used by homeowners, lenders, and realtors, but does it generate reliable data? How accurate is Homebot anyways?
Homebot is actually a great tool, especially compared to its other counterparts. It can give homeowners valid details about their property’s value. In turn, it helps people save money and discover potential options for building wealth.
Below, you’ll find everything you need to know about Homebot, what it offers, and how accurate it can be.
How Accurate Is Homebot?
Homebot gives fairly accurate insights about home valuation based on the most recent data available in the area. The service[1] uses Automated Valuation Models (AVMs) to calculate a certain home’s worth.
Basically, it’s a calculated guesstimate based on the price of comparable properties listed on the site’s database around the same area. Thus, these valuations change in relation to the market changes.
Automated home value sites are great for helping homeowners and buyers track the value of homes over time. However, these tools don’t take into consideration any home renovation or updates done after its sale.
So, for those looking to sell their homes, having additional consulting from local realtors is the way to go.[2]
That said, Homebot offers homeowners the option to challenge the estimated home value if they think it’s not correct. The “Tune Your Value” service allows them to cite the reason for their request and work with professionals to change the valuation into a more accurate version.
Where Does Homebot Get the Estimated Values From?
Homebot utilizes a variety of third-party data sources to build an advanced algorith[3] m. Through its two fully automated AI products: Homebot for Homeowners and Homebot for Buyers, the service helps clients maintain their wealth.
Homebot regularly extracts information from public records and local listings to keep its database up-to-date. It generates one of the market’s highest-quality valuation insights.
The tool claims to get more market data through homeowners, realtors, and other providers (such as Altos Search).
What Can Homebot Do for Homeowners?
Homebot offers great help for homeowners in various ways. Aside from letting you track your house’s value in the market, Homebot also allows you to:
1. Discover Possible Refinancing Options
Refinancing a home mortgage can help you save a considerable sum of money. Using Homebot, you discover your refinancing options based on your house’s current value. This way, you get to pay off your home sooner than initially planned.
Considering the current national mortgage rate, Homebot can give you three refinancing scenarios. Studying these options, you become more aware of how each one can impact your financial status[4] .
2. Turn Your Home Into a Rental
Whether moving to a bigger place to have more room or a smaller one to cut expenses, renting your current house can be a great idea. Homebot gives you insight into how your house would perform in the rental market.
Through this platform, you can run the numbers and get an estimate of the revenue you may make renting your house. Even if you plan to rent a part of your house, Homebot helps you with that too.
3. Know Your Loan Payoff Amount
Homebot can combine the public records data about your home with the information you give it about your mortgage loan. As a result, it gives you a better picture of what you paid and how much equity you have at the moment.
In general, the lower your principal balance on your home mortgage, the higher equity you own. In turn, it raises the leverage you have when you consider purchasing another home.
4. Learn the Possibility of Paying Off Debt or Buying a New Home
Homebot also helps you understand how far you are from owning enough equity to enter the real estate market. This factor determines whether you can take a home equity line of credit, which you can use as a downpayment for another home.
Another option Homebot can aid you with is a cash-out refinance on your house mortgage. Going this way allows you to take another loan with your current home as collateral. Whether you use the money to buy another house or pay off your debt, this option is worth considering.
FAQ
A Final Thought
Most of the average U.S. retirees’ wealth comes from their home equity. Homebot is supposed to help individuals manage their assets by providing them with home finance insights, but how accurate is Homebot?
Homebot is a real estate analytic tool for both homeowners and realtors. Not only does it give homeowners a valuation of their homes, but it also helps connect potential buyers with real estate agents and loan officers.
Although the tool doesn’t take home renovations or fixer-uppers into consideration, it allows you to challenge the estimate and tune the value.
Considering all the other services Homebot offers, it can be an immensely useful tool.
