Blog

How Accurate are Zillow’s Zestimates?


Can you trust Zillow’s Zestimate to accurately determine the value of your home? It depends on these key factors.

Buying a home? Click here to search all homes for sale.
Selling your home? Click here for a free home value report.

Many people love to use Zillow to evaluate a home if they’re thinking about buying or selling a home. How accurate are Zillow’s home value estimates, or Zestimates, though?

Zillow uses an algorithm to determine home value, much like the algorithms used to assess the value of a large pool of mortgages bought and sold in the market. According to market research and even Zillow’s website, Zestimates can range from 5% to 25% too high or too low.

If your home is worth is $200,000 but Zillow says it’s worth $220,000, it will sound exciting, but buyers will know what the home’s true value is. You only get one chance to make a first impression, and you don’t want to ruin it by pricing your home too high just because you relied on false information from an algorithm.

 

Even Zillow admits that Zestimates should only be used as a starting point.

 

Even Zillow says that their Zestimates are a good place to start, and state on their site to “Please know that we, Zillow, do not intend for the Zestimate to replace a comparative market analysis, as they can take into account market intricacies that the Zillow Zestimate can not.”

The Zestimate simply can’t replace the market expertise of an agent like myself who studies the market all day long.

If your home is in a good neighborhood with other similar homes and you haven’t made any major home improvements over the area standard, Zillow might be close. However, if your house is in an area in a transition, has a wide variety of home types and sizes, or is in an area that’s very urban or rural, Zillow will be way off. Zillow can’t see inside your home or distinguish between a three-acre flat lot and a three-acre lot with woods, a pond, and a stream.

We offer homes on Zillow in Kettering Ohio as well!

If you’re curious what your home is really worth or you’re thinking of buying or selling a home, give me a call or send me an email. I’d be happy to help!

Erroneous Zestimates

Buying a home? Click here to perform a full home search 

Selling a home? Click here for a FREE Home Price Evaluation 

Call us at (937) 432-2644 for a FREE home buying or selling consultation

The truth has finally come out. What truth? The truth about Zillow!

Unfortunately, in the past, most people who got their home valuations from Zillow took them as absolute fact, which creates a problem with buyers and sellers because often times these values are significantly off.


The CEO of Zillow was recently interviewed on CBS, and when asked about the accuracy of Zillow’s home valuations, he stated, “It’s a good starting point. The error of margin for Zillow is on average 8%.” Denise Swick pullquote 4.23

We don’t know about you, but that’s a lot of money in this market when being overpriced by even 5% will stop your home from selling. Often times when people are looking to buy or sell, they are taking those inaccurate Zillow values, when what they really need is a professional to guide them.

We are in a typical spring market right now where homes are coming on the market and selling. However, in this market, you need to be priced right to drive the price up on your home and make sure you get the most money possible. So, if there’s anything we can do to help you purchase or sell a home, give us a call or send us an email, and we would be glad to help!

Managing Your Online Real Estate Presence from Zillow to…eBay

Think of any major purchase you have made in the past year, how did you come to that decision? Did you flip through your local phone book to call an expert? Unlikely. You probably did what any other, rational human would do: you got on the internet. Believe it or not, the same is true when it comes to buying and selling houses.

Twenty years ago, no realtor would have told you that the internet would eventually be the driving factor behind most real estate transactions. That might be a powerful statement, but considering the fact that Zillow recently bought Trulia for $3.5 Billion (with a B!), I’d say there is definitely something to this online real estate thing.

Zillow and Trulia are the two largest home listing services on the web. Some others such as Realtor.com, have been trying to catch up for a while now, but few have been able to. Actually, social media sites such as Facebook, Twitter, and Google+ are even becoming more popular for marketing your home. In turn, this is also a great way for finding new properties you may have skimmed over.

That’s great, Denise. Why do I care?

Wow? Straight to the point. Whether you are buying or selling, it is important to be utilizing these instruments. At Denise Swick & Company, we have built a solid foundation on all of the platforms listed above, so we can provide as much information to buyers and sellers as humanly possible. With so many different channels for people to get their information, we must be as wide-spread as possible.

Here’s another reason why you should care:

Ultimately, the Multiple Listing Service (MLS) is the greatest online tool for buying and selling homes. The MLS goes beyond the previous sales, basic specs, and “estimates” that can be seen from the major commercial real estate sites and provides the “insider” information needed to get the edge. So, how can you get information you need from the MLS? Realtors.

At Denise Swick & Company, we have Buyer Specialists that know everything about the MLS and can conduct searches based on your wish list. Also, as a Listing Agent myself, I have been performing accurate Comparative Market Analyses for over twenty years.

What about that thing about eBay?

Oh, you mean the title? That just goes to show you how many different online real estate sites were out there. You didn’t really think you could buy a house on eBay, did you? Well, I certainly didn’t! It turns out there are a TON of houses for sale on eBay, including some in Dayton, OH! It doesn’t stop there, though; Craigslist is also another popular avenue for selling homes.

At the end of the day, you want every advantage you can get when buying or selling your home. There’s no way anyone could ever monitor all of those sites and keep track of all of that data. They would have to do it as some sort of full time job! At Denise Swick and Company, we monitor and manage all of these outlets for our clients to find them the best home out there and to find the perfect buyer for their home.

Choosing a realtor to help you in the buying or selling process (or both!) can take some stress off and provide you with the only sure way to get all of the information you need. The last thing you want is to miss out on an awesome opportunity because you didn’t know where to look!

Yes, we also offer homes on Zillow in Oakwood Ohio!

Whether you choose to work with Denise Swick & Company or not, I hope you find a realtor that is right for you. According to the National Association of Realtors, over 90% of all real estate transactions in the past three years have been through realtors. So, if you would like more information about buying or selling, click on the “Contact” button above.

To see the houses currently listed on our MLS, visit www.DaytonRealEstateOnline.com and search for your dream neighborhood! Links to all of our social media and home listing services can be found under the “Testimonials” tab or by clicking the icons at the top of the screen. As always, feel free to contact me with any questions!