Zillow is one of today’s most popular online home valuation tools—the “Zestimate” is their estimation of your home’s value. How do you know if your Zestimate is correct? Unfortunately, it probably isn’t.
I want to warn you all against relying on Zillow to make any real estate decisions, regardless of whether you are buying or selling a home. Consumers these days are increasingly relying on online home valuations, yet these online home estimates are just that—ESTIMATES. There’s no better illustration of that than an article (click here to check it out yourself) that you might have missed in the news back in February about the CEO of Zillow, whose home ended up selling for a whopping 40% less than what his Zestimate!
While Zillow can be a great real estate resource, there are few caveats. First, know that there are certain factors Zillow cannot take into account, such as an irregular lot size, patterns of buyer demand, improvements that might affect your value or unique circumstances surrounding past sales. Zillow does not derive its data from the MLS like professional real estate agents do. The MLS is the most accurate and complete source for listings. On the other hand, professional agents study the market, research the relevant sales, and have often personally been inside the competing homes, and homes recently sold. That’s the kind of knowledge you really need to determine your home’s value.
Zillow even admits that their median error nationwide is 7.9%.What does that mean to you? It means half of Zillow’s Zestimates are off by more than that! You deserve better.
Luxury homeowners beware, Zestimates are even more likely to be inaccurate with high end luxury homes with unique features.
We are here to help you. If you have any questions about your home’s value or want to know about improvements that will add value to your home, give us a call. We would be happy to help you!