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Friday, September 30, 2016

Are Zestimates Accurate?


Can you trust Zillow to calculate your home value? Unfortunately, Zillow’s Zestimates are often inaccurate.


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How accurate is Zillow's Zestimate? Unfortunately, they are not very reliable when it comes to calculating home values.

In fact, Zillow’s own CEO sold his home earlier this year for 40% less than what his Zestimate said his home was worth. That is a very sizeable gap!

Generally speaking, Zestimates are off by at least 10% (give or take) across the United States. Some Zestimates might not be very far off, while others are completely wrong. Ultimately, Zillow’s Zestimates are a good tool for finding a ballpark figure rather than an exact value. 




Zillow has no way of knowing what condition your home is in.


 

There are many factors that Zillow cannot take into account when calculating home values. For example, Zillow doesn’t know if you have a view of the mountains. Zillow doesn’t know where your house is located in your neighborhood, whether it opens up to a green space or parking lot, or how much acreage you have. Zillow also cannot see any updates you have made to your home.

Zillow is often inaccurate because the algorithm it uses to calculate its Zestimates is tied to the county assessor's office. The value the county assessor has for your home is often outdated by 18 months and is usually not an accurate representation of what your home is worth in the current market.

Zillow might be a good place to start researching your home value, but you shouldn’t make any major decisions based on the Zestimates. If you have any questions about what your home is really worth in today’s market, give me a call or send me an email. I would be happy to help you!