The Trouble With Zillow’s Zestimates
Written by Jon Long on July 9th, 2020
Can you trust Zillow’s Zestimates?
There are some upsides to the Zestimate feature: You can access it in the blink of an eye and you won’t have to input a ton of information. All in all, the Zestimate tool is a great starting point for homeowners who want to get a general sense of their home’s value.
For all the good, though, there’s some bad as well—Zillow’s Zestimates can be off by as much as 8% to 10%, and they say as much on their website. Seeing as a significant number of homes in our area fall into the $700,000 price range, a 10% miscalculation could amount to $70,000.
Zestimates are created through algorithms that rely on public data, such as MLS records, and they use that information to assess your home’s value based on comparable sales nearby.
“A real estate professional who works in your area will know it inside and out, and they’ll be more precise when evaluating your home than a Zestimate could ever be.”
Where the Zestimate falls short, though, is in its assessment of certain features and updates that come with your home. If you have a lot that’s 10,000 square feet, for example, the Zestimate will fail to take into account how much of that is usable. The age of your updates is a factor it will leave off the valuation as well—was your home updated just a few years ago or was it done as far back as the 90s?
A real estate professional who works in your area will know it inside and out, and they’ll be more precise when evaluating your home than a Zestimate could ever be. You’d be well-advised to reach out to an agent who serves buyers and sellers in your area because they’ll have exposure to the most up-to-date offers in your market. That way, they can get you the best value for your home.
If you have any questions or you’d like to know the value of your home, feel free to reach out to me anytime. Give me a call at 714-396-6848 or email me at [email protected] Talk to you soon!