Automated valuations found online are data driven algorithms that rely on information derived from public and private sources, such as a county assessor and the multiple listing service. The data used to automatically estimate a home’s value may include zip code, square footage, school district, bedrooms, bathrooms, and prior sales within an area. What they are not able to evaluate is the character of a property including condition, updates, location specifics (next to a park or a gas station), type of construction, the builder, or the current local market condition. If there are sales of several similar homes in the same area, they can be accurate. If not, there could be a significant difference in the automated valuation versus actual market value.