Question for all the people who use the last appraisal instead of a current online estimate: what is the purpose of this? Why even bother including your home value if you are going to use an outdated value? What purpose does it serve? If you aren't going to account for your current house value, then why include an outdated/more inaccurate one at all?
I feel like I'm missing something.
I like that it serves as a "close-to-worst case value" and that I have to spend 0 minutes moving forward on research as it won't change. I also feel the estimates can be pie-in-the-sky and as others have mentioned, there are costs to selling so a downward adjustment would be needed if using the "truer" value. If I did use the more accurate number but then had to subtract for some selling costs, I'm right back to the neighborhood of my last appraisal anyway so I don't see much value in taking time to track this. If and when I do move, the equity is likely to be greater than the difference from my monthly NW sheet of what I have written down as the asset value (last appraised value) minus what I owe on the mortgage. This sounds better to me than the opposite problem and again, I'm not interested in taking the time to nail it down with much more precision.
It's sorta similar to the traditional vs. Roth question where people choose traditional and run the risk of having "too much money" when older (as opposed to not enough money but in a Roth). Here, if I'm wrong and my risk is that my house is worth more than I wrote down in my monthly NW spreadsheet, there's not too much downside.
Still, this is what works for now. I receive occasional pieces of junk mail that have the estimated value of my home on there. If the truer price of the property got so far out of line with the appraised rate, I would change my method as it could have an impact on financial decisions to an extent (could change schedule of when to move, how much to put down on next house, etc.). But I don't see that happening anytime soon, if ever. Maybe if I didn't live in a 1008 sq ft brick house built in 1939 surrounded by other similar houses I'd worry about prices more. Shit just doesn't change that much here.
I just like watching the numbers change with minimal effort, mostly the investment ones. If it turns out I'm actually better off than I realize because my property is worth more when it comes times to sell many years down the road, I'm fine with being pleasantly surprised.