Many people wonder whether Zillow’s Zestimate feature can be trusted, so today I’d like to get to the bottom of this common question.
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We hear it all the time: “Can Zillow accurately determine my home’s value?”
Actually, no. In our estimation, Zillow’s Zestimates tend to be between 5% to 15% off. In more extreme cases, it can even be between 25% to 35% off from the home’s real appraised value.
The reason for this disparity is Zillow’s flawed algorithm, which is supposed to use comparable local properties to calculate a home’s value. Unfortunately, the scope of homes Zillow uses during this calculation simply isn’t wide enough. Zillow doesn’t take key factors, like upgrades and location, into account during its evaluation. What’s more, it can’t “see” the inside of your home like an agent or an appraiser can.
When it comes to finding a property’s value as you prepare to buy or sell, you need to rely on the expert advice of a real professional.
This is why it’s important to have a professional evaluate your home instead. Zillow’s Zestimate may be a decent tool for getting a very rough starting point, but you should always take the results of its calculation with a grain of salt.
The CEO of Zillow himself received a Zestimate on his home that was 40% higher than what his property actually sold for. The bottom line is that when it comes to finding a property’s value as you prepare to buy or sell, you need to rely on the expert advice of a real professional.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.
