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