A home valuation determines a property's current market value, which is essential for real estate transactions. It helps prevent over-borrowing and financial loss. When a mortgage is taken, the home serves as collateral. If the borrower defaults, the lender can sell the property to recover funds. A proper valuation ensures the lender can recover costs if the mortgage isn't fully repaid.

Home value is determined by factors like location, size, age, condition, renovations, and recent sales of similar homes. It also considers market trends, inventory, interest rates, and buyer sentiment.

Online home valuations offer a general estimate but may miss factors like renovations, unique features, or market perception. For a more accurate assessment, consider an in-person appraisal.