How Is My Property Valued?

Flock Homes values your property at fair-market value, using industry-standard underwriting, leading automated valuation models (AVMs), and recent comparable sales, then confirms it with a formal inspection before anything is final.

If you're thinking about a 721 exchange, this is probably your first question. The value sets how much equity you receive, so it should never feel like a black box. Here's how it works.

What does fair-market value mean?

Fair-market value is what your property would reasonably sell for between a willing buyer and a willing seller, with neither one under pressure. It isn't a discount for the convenience of a quick deal, and it isn't a hopeful number from a listing.

Our goal is a fair-market valuation for every rental we look at. For the longer version of how our valuations team thinks about this, read our data-driven approach to property valuation.

What goes into the number?

Two main tools do the first pass.

• AVMs. These are software models that estimate a home's value from public records, sales data, and market trends. Flock Homes uses leading AVMs.
• Market comparables. These are recent sales of similar homes nearby. Comps ground the AVM numbers in what buyers are actually paying.

Then the details of your property move the number up or down. Three matter most.

• Configuration. Bedrooms, bathrooms, square footage, lot size, and layout.
• Location. Two houses on the same street can be worth different amounts. Backing onto a busy road or power lines isn't the same as backing onto a park.
• Condition. A newer roof, updated kitchen, and well-kept systems count in your favor, while worn or outdated features count against it.

Does anyone actually look at the property?

Yes. Flock Homes does a formal inspection on every prospective property before finalizing the valuation. The estimate you get early on is based on data, and the inspection is where the numbers meet the real house.

If the inspection turns up deferred maintenance or needed repairs, the valuation is adjusted for them. That isn't a penalty. A buyer in the open market would ask for the same thing, and it keeps the number honest in both directions.

What if I disagree with the valuation?

That happens, and it's fine. You can ask us how we got there. If you share something we didn't have, like recent upgrades or comps we missed, our team will review it and update the valuation if it changes the picture. We also inspect every property before closing, and if the condition is different from what we assumed, we update our numbers to match.

The estimate is free, and you're never obligated to move forward. Nothing is binding until you sign the contribution agreement. If a different path, like selling on the open market, gets you more, that's a perfectly good choice. We want you to decide with clear numbers, so there's nothing to regret later.

Flock Homes also only transacts on properties that meet its return criteria, so in some cases the answer may be that your property isn't a fit, and we'll tell you.

What happens to the value after I join the Fund?

Once you hold equity in Flock's Fund, the value of the Fund is refreshed quarterly using AVMs and third-party appraisers.

Every property is also third-party appraised at least every 24 months. You can see performance reporting and asset-level detail in the Client Portal, and the performance page has more.

Want to know what your property is worth?

Submit your rental address for a free valuation. It's free, with no obligation, and you'll see how the number is built. Still weighing it? Read what other owners say or browse the FAQ.