How does PennyMac work? | Should I trust it? | Step-by-step guide | Pros and cons | Real example | PennyMac alternatives | FAQ
Editor's take
Overview
PennyMac's estimator is decent for sellers and buyers who want a quick home value estimate, but it falls short compared to Zillow and Redfin. For the most accurate estimate, get a comparative market analysis (CMA) report from a local realtor.
Pros
- The PennyMac estimator is fast, free, and easy to use.
- It often has accurate property information.
- It gives you multiple home values.
Cons
- Comparable sales may be outdated.
- There's no option to add renovations or repairs.
- PennyMac doesn’t save your estimate.
How accurate is the PennyMac home value estimator?
We found the PennyMac home value estimator more accurate and useful than some of its competitors, but we still ran into issues when testing it. It used outdated comparable sales, resulting in inaccurate home values.
We recommend trying other free online home value estimators, like Zillow's Zestimate and the Redfin Estimate. Comparing home values from multiple tools can give you a more accurate picture of your home's fair market value.
However, a home value estimator isn't a substitute for a home valuation from a realtor or appraiser. Online estimators can provide a general idea of what your property is worth, but you shouldn't rely on them to set a competitive listing price or submit an offer.
If you're ready to set a list price, contact a local realtor for a free comparative market analysis (CMA) report. CMAs are much more accurate, and they can help you price your home competitively for a profitable sale.
Unlike home value estimators, a real estate expert hand-selects the best comparable sales and can give you credit for renovations and upgrades.
» Learn more about CMAs | Request a free CMA from a local realtor
How PennyMac's home value estimator works
Founded in 2008, PennyMac is one of the nation's biggest mortgage lenders. In 2023, the company serviced loans totaling over $500 billion.[1]
While PennyMac is primarily a mortgage lender, its website offers users several tools, including mortgage calculators and an automated valuation model (AVM), also known as a home value estimator.
You can plug in an address in any state and get a free home valuation within minutes. Your home valuation report includes:
- An estimated home value based on public data, like recent comparable home sales
- A Zillow home value estimate (on some properties)
- The home's estimated price per square foot
- A detailed home description, including its beds, baths, and interior square footage
- The home's sales history
- A list of up to 10 recent comparable sales in the area
PennyMac's home value estimator is for informational purposes only. The lender makes it clear on its website under its disclaimer that its home values don't constitute an appraisal and shouldn't be considered reliable.
PennyMac home value estimator: Should I trust it?
We tested PennyMac's estimator on several properties in multiple markets to review its functionality and determine its accuracy. Here's what we found.
Fast and easy to use
We found PennyMac's website easy to use on a web browser.
After plugging in a test property and clicking "get my home value estimate," we received a home value from PennyMac within seconds, plus its property details and a list of 10 comparable sales.
While you can get this information from other home value estimators, we found PennyMac's estimator much easier to use than the Chase estimator and Ownerly.
» JUMP TO: Step-by-step guide to using PennyMac
Doesn't collect your data
PennyMac only requires you to enter a property address to receive a home value.
Unlike other websites, it does not ask for your name, phone number, or email address, so PennyMac won't collect your personal data or try to contact you.
Uses outdated comparable sales
Unfortunately, PennyMac's home values aren't that accurate.
The lender often provides two home values: An estimated home value from an unknown source, and a Zestimate from Zillow.
Our estimated home value came in much lower than other home value sites. Similar to other popular home value sites, PennyMac chooses outdated comparable sales.
Real estate agents, brokers, and appraisers typically use recent comparable sales (1–6 months from the date of the home valuation), but PennyMac used three homes with sale dates of eight months ago.
Zillow is the only estimator we tested that allows its users to choose their own comps for a home value estimate.
No option to add renovations
Many home value sites often fail to properly value a home based on its recent renovations, additions, or major repairs, and PennyMac is no exception.
According to the company: "There is some information that no estimation tool can always account for, including recent upgrades to a home or issues that might come up in an inspection."
However, Redfin's estimator allows users to edit square footage for an updated valuation.
PennyMac home values: Step-by-step guide
We put PennyMac's tool to the test on a random single-family property in Austin, Texas.
Here's how the process works and our thoughts on its accuracy.
1. Enter the address

Once on PennyMac's home value page, enter the address you wish to receive a home value for, confirm you're not a robot and click get home value estimate.
2. View your home value

PennyMac displays a public image of the front of the home and asks if you're interested in buying or refinancing your home.
Scroll down to the middle of the page for your home value estimate and price per square foot. It appears next to an image of a dollar sign inside a blue house.

Our test property has an estimated home value of $518,035 and a value of $358 per square foot.
3. View property details and comparables
Finally, PennyMac's estimator pulls the home's information from Zillow or its tax records. It lists its beds, baths, living area, county, year built, and the number of floors.

Comparables determine our property value. These are recent, local home sales closest in size and condition to our property.
Unfortunately, PennyMac uses multiple outdated home sales. Several homes sold in 2021.
Several homes (red houses) are also miles away from our property (yellow star). Below the sales table is a Google Map with the location of each home sale.

PennyMac home value estimator example
How does PennyMac's home value estimate for our test property compare to other sites and our estimate?
Our property is a 3-bed, 2-bath single-family home with 1,396 sq. ft., located in the Pheasant Run neighborhood of Austin, Texas. Homes in the area have a median list price of $479,000, according to Realtor.com.
See how the numbers compare, ordered by lowest value to highest.
Source | Value |
---|---|
Chase | $473,600 |
Ownerly | $506,346 |
HomeLight | $515,000 |
Zillow | $515,400 |
PennyMac | $518,035 |
Realtor.com | $529,800 |
Our estimate | $586,814 |
Redfin | $590,956 |
Average value | $529,494 |
*Data pulled on July 27, 2022.
What we found:
- Most of the home value estimators undervalue the home.
- Chase had the lowest home value estimate by far. Chase uses a comparable sale that sold for $362,500 (it looks like a distressed sale.) Its home value is far too low.
- Zillow uses an active listing in the area (listed at $649,000) to determine its home value estimate but also uses several low-priced sales.
- Realtor's home value of $529,800 is based on an average of three valuations from data providers CoreLogic, Collateral Analytics, and Quantarium and appears to be accurate.
- Ownerly provided us with two estimates: $456,000 and $556,691. We used an average of the two.
- Several home value estimators – including Bank of America and RocketHomes – did not return any data.
We ran the numbers and came up with a home value estimate of $586,814 for this home, based on the average sales price of the three most similar, recent area home sales.
The big difference between our estimate and others is: We chose a comp that sold for $602,000. The home is less than a quarter mile from the subject property and is very similar in size and condition. Several estimators did not use this comp.
Out of all the estimators, Redfin came the closest to our estimate.
PennyMac home value estimator: Pros and cons
Pros
- Fast, free, and easy
- Accurate info
- Multiple home values
Cons
- Outdated comparables
- No option to save values
- Renovations not considered
Fast and easy to use
PennyMac's home value estimator is one of the easiest to use. We pulled multiple home value estimates within seconds.
PennyMac doesn't require a phone number, email address, or contact information to get a home value.
The website is pretty straightforward. It contains a home value estimate, property details, and a list of comparable sales.
Accurate property information
While its home values are lower than our estimates, we found property information accurate compared to its tax records.
We also received accurate prices per square foot and sales history of nearby homes.
Multiple home values

In some cases, PennyMac provides its users with two home value estimates: its own and a Zillow Zestimate.
Receiving multiple home values can help you compare estimates and information about a property.
Often uses outdated comparables

Unfortunately, PennyMac's home value estimates often rely on irrelevant and outdated comparable home sales.
Real estate agents and brokers rarely use sales of more than six months from the date of the home valuation.
Seven out of 10 of PennyMac's comps sold in 2021 — more than seven months from the date of this article. And several sales were missing key property data, including beds and baths.
According to PennyMac: "AVM reports ... do not constitute appraisals or broker price opinions of subject properties and may not be relied upon as such. Any use of Consumer AVM reports by End User shall be at End User's own risk."
No option to save home values
The option to save a home value and receive regular updates via email is useful as the market is constantly changing.
Sites like Zillow and Redfin currently offer this feature. PennyMac users must go back to the website and plug in the address to check if their home value has changed.
No option to add home renovations or repairs
Like many other home value websites, PennyMac does not allow users to add renovations, upgrades, or major repairs to a home. A major kitchen renovation won't do anything to its value estimate, for example.
How PennyMac home values compare to other estimators
PennyMac vs. Zillow
Zillow home values are among the most accurate, with a national median error rate of 2.4% for active listings and 7.49% for off-market homes.
It also provides a homeowner dashboard, where users can view sales information, a list of comparables, and an estimated net proceeds calculator.) It saves and updates home values weekly.
Zillow also likely covers more properties than PennyMac, covering over 100 million homes.
» MORE: Zillow home value estimator reviewed
PennyMac vs. Redfin
Redfin's home value estimator compares favorably to PennyMac.
Like PennyMac, Redfin home values are updated regularly — daily for homes currently listed for sale, and weekly for off-market homes.
However, Redfin offers its users a homeowner dashboard with useful local sales information, including average sale price, days on market, and sale-to-list price.
» LEARN: Redfin vs. Zillow breakdown: Which is better?
PennyMac vs. Chase
We think PennyMac is a slightly better alternative to Chase's home value estimator.
Several properties we tested on Chase had incorrect or missing information compared to their tax records. For example, Chase's home value estimates also frequently came in much lower than expected.
» MORE: Why Chase's home value estimator falls short
PennyMac vs. Bank of America
PennyMac and Bank of America rate similarly, as both as fast and easy to use, with no personal information required.
However, we found both estimators use outdated sales to determine a home's value, which undervalued our test property.
» MORE: Bank of America home value estimator reviewed
PennyMac vs. Ownerly
PennyMac is also a more favorable option compared to Ownerly's home value estimator.
Ownerly is the only home value site that charges its users a fee ($1 for a 7-day trial, then $34.99/month). While it provides users with plenty of home data, its estimator isn't worth the hassle.
PennyMac home values: FAQ
How do I find my home's estimated value?
There are several ways to find the estimated value of a home.
- Use home value estimator tools. PennyMac and other sites provide free home values based on comparable sales data and property information from tax records. View the best home value estimators based on accuracy and functionality.
- Get a CMA report from a realtor. A CMA is a home value report created by a local real estate professional who hand-selects comparable sales and views your home in person. Unlike a home value estimator, a realtor can give you credit for your home's upgrades and renovations. An agent matching service can match you with agents for a free CMA report.
- Hire an appraiser. You can get your own home appraisal before listing your home for sale, as long as you are willing to pay for it ($400500). A licensed appraiser visits your home in person for an inspection.
What is the most accurate home value website?
Zillow and Redfin rank as the two most accurate home value sites.
Redfin has a median error rate of 6.47% for off-market properties, while Zillow's is 7.49%. But that means your home value estimate could be off by tens of thousands of dollars.
No real estate website is 100% accurate. The closest thing you can get to an appraiser is a CMA report from a licensed realtor or broker.
What's the difference between an AVM and an appraisal?
An automated valuation model (AVM) is a computer-driven formula that uses basic property details (beds, baths, square feet) and recent comparable sales to deliver a home value estimate.
An appraisal is an in-person valuation of a property by a state-licensed appraiser. The appraisal value is determined by hand-selected comparable sales, and a visual inspection of the property and its neighborhood.
AVMs are fast and free, while appraisals are expensive and can take days (or weeks) to finish. You can get a pre-listing appraisal before setting a list price on your home.
Related reading
The Best Home Value Websites: Sites like PennyMac provide a ballpark idea of your home’s fair value. We rank the most popular home value estimators, including Zillow, Redfin, and Realtor.
How Accurate Are Zillow Zestimates? How does Zillow’s home value tool rate compare to PennyMac, Redfin, and its peers? View its accuracy rates and if you should trust it.
Redfin Home Value Estimator Review: Redfin is more accurate than some of its competitors, but should you trust its home values?
Chase Home Values: Not That Accurate: Learn why we rate Chase as one of the worst home value estimators.