I often hear sellers using the Zillow “Zestimate” when trying to ascertain the value of their home – at least when the “Zestimate” benefits them. But the question is: How accurate are these “Zestimates”?
In a nutshell: Not very.
Zillow’s data is extrapolated from sales that have happened in the area, regardless of neighborhood and regardless of size, condition, amenities. It does not take into account the local buyer’s preferences for “all bedrooms up” or “master down”, homes that sit on more than one lot with separate tax id’s, functionality of floor plan, school, busy street or cul-de-sac and a variety of other features.
And whereas homeowners could log into the system and post extra information about the home (such as if there is a pool if the data shows otherwise) or answering other questions about the home and updates, it would require all homeowners in the area to do the same. Even with this, the system compares homes that may not be in the same neighborhood or even county.
Previously found on Zillow: When reviewing a 3500 sq.ft. home with a value of approx $450,000, “similar” homes nearby noted on Zillow ranged from 1200 to 5800 sq.ft. The smaller homes were in a different neighborhood in a different county and different school district. It is obvious that a $100,000 home could have no part in determining the value of a $450,000 home in another county/neighborhood/school district.
What is the BEST way then, to determine the value of your home? Check out www.SellThisPlaceNow.com and call for an appointment. We can help whether you are in Los Angeles, Houston, Seattle, New York, Miami or anywhere in between!