Dan and Michael Nathanson
What You Need to Know About Zestimates
We hear it all the time: “My Zestimate says that my property is worth x.” But are Zestimates really an accurate tool for determining the value of your home? Selling a home? Get a free home value reportBuying a home? Search all homes for saleWe hear it all the time. “Zillow says my home is worth this much,” or “My Zestimate says this,” but the question we’d like to answer is, “Can Zillow give you an accurate property valuation?”In our experience, Zillow estimates are often at least 5% to 15% off, and in some extreme cases, 25% to 35% off of the home’s real appraised value. Zillow uses a basic algorithm that is supposed to use comparable property sales in your neighborhood to come up with a value; however, finding the true value of a property isn’t that simple.The best way to determine a property’s value is to talk to an experienced professional agent who will do the research, find comparable sales, physically assess the property, and then analyze the data. There is no way for Zillow to account for all of the factors that give a property its value.Zillow is a decent tool to get a very rough idea of your property’s value, but not to find an accurate value. In fact, even the CEO of Zillow agrees. An article that we recently read details how Zillow’s CEO listed his home for sale in Seattle, and despite the Zestimate saying that it was worth about $1.75 million, it sold for just under $1.1 million. That means that the Zestimate was nearly 40% off!“Zestimates are far from the final word on a property’s value. ”The moral of the story is this: Zestimates can be a good conversation starter for pricing a property, but they are far from the final word on its value, especially if you’re looking for an accurate number.If you or somebody you know is thinking about buying or selling a home or if you have any real estate questions, don’t hesitate to call or email us today. Let us know how we can help you get sold by The Bros!