How accurate are Zestimates? Most of the time, not very. They’re basically a computer program designed to give you a ballpark figure of what the property is worth in today’s market.
How does Zillow determine my home’s value? It gives you a broad range of what’s been sold in the neighborhood, but it doesn’t go into specifics about your exact home. It doesn’t know about what kind of features you’ve got; maybe the kitchen you’ve upgraded, or that big back yard behind the deck, or the fantastic view over the neighborhood. Since Zillow’s Zestimate is a computerized program, it doesn’t know about these things, and that can result in quite a bit of fluctuation between what the real value is and what Zillow says it is. Zillow also can’t measure how market trends function, meaning it can give you a wide estimation of what’s selling in the area, but not in specific niche markets.
How off is Zillow on pricing? If you check their website, you’ll see that they themselves say their Zestimates can be off by as much as 8% to 10%. When you’re talking about the California market, that can result in an extreme difference between Zillow’s price and the real price. The founder of Zillow himself recently sold his home for far less than it should have been because the Zestimate was 10% off.
What goes into pricing your home and why is it important to be accurate? To sell your home for top dollar in today’s market and get the most we can for you, it’s important to examine market trends to know how to compete against the other homes out there. How do we do this? We come to your home and check things like what kind of landscaping you’ve done and what updates you’ve made. From there we make sure these kinds of things are showcased to maximize value.
Click on the link above if you would like a free market analysis. If you have any questions about Zillow or anything regarding real estate, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.