Automated estimates like Zillow's Zestimate are a convenient starting point, but they can't see a property's legal problems. Here are five warning signs a home may not be worth what an algorithm says.

1. Incomplete disclosures

Sellers must disclose known material defects. If the disclosure report says "no known defects" but you see water stains on a ceiling, ask questions. Review the report closely and have your attorney take a look if something doesn't add up.

2. Unpermitted work

A finished basement or added bathroom without permits may have to be brought up to code, or even removed. Ask about renovations and check permit history. In Chicago, you can search permits and building violations by address.

3. Title issues

Liens, easements and ownership disputes affect value and can delay or derail a sale. Your attorney reviews the title commitment and works with the title company to clear issues before closing.

4. The neighborhood and the building

Location drives value. Research the area, planned development and, for condominiums, the association's finances. Low reserves or a pending special assessment can matter more than any estimate. See condo resale disclosures.

5. Comparable sales

An automated estimate may not reflect current conditions or true comparables. If a home is priced well above similar recent sales, ask why. Your broker can pull recent sales to support your offer.

Making informed decisions

Online estimates are a tool, not an appraisal. Careful review of disclosures, permits, title and comparables protects you from overpaying. See buyer representation.

By Attorney Shara Kamal. General information for Illinois readers; not legal advice for a specific situation.