If you’ve ever so much as considered buying or selling a home, then you have likely encountered Zillow’s popular web-based value tool: the Zestimate. But how accurate are these Zestimates?
Before we get into that, let’s first take a look at where Zillow’s information comes from. Zestimates pull data input by its users, as well as from public records made available by the county assessor. Yet it’s the information Zillow doesn’t account for that really poses a problem.
For example, Zestimates do not reflect any improvements made to a home. Zestimates also can’t account for demand. This results in a major disparity between the property’s true value and the one indicated by its Zestimate.
In fact, there is typically about a 10% margin of error in Zillow’s Zestimates. And Zillow is well-aware of their Zestimate feature’s shortcomings. They have even gone so far as to put out an offer of $1 million to anyone who can improve their algorithm.
With so many gaps in what a Zestimate can detect regarding home value, it simply isn’t a reliable tool. The stakes are too high in a real estate transaction to trust something as faulty as a Zestimate. It’s always best to get a professional’s opinion on your home’s value.
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.