Here’s what homeowners need to know about the veracity of Zestimates.

Can you trust Zillow's estimate of your home’s current market value? Well, let’s first focus on how these online tools work; Zillow uses an algorithm to pull data from public sources, tax info, and in some cases, market conditions. The drawback this model presents is that it pulls from an entire area without taking into account the specific home’s condition. Oftentimes, it will group homes in varying quality levels together and ignore improvements made to the properties. 

The best way to get an accurate home valuation is to meet with a competent real estate professional who knows that local market.

Zillow’s own website admits their Zestimates could be off the mark by anywhere from 4% to 12%—a pretty big range if you ask me. This means you could be leaving tens of thousands of dollars on the table if you just rely on your Zestimate. 

How is the professional real estate agent’s estimation of value any different? Instead of relying on public data, we use the latest market data and leverage our years of experience buying and selling homes. Unlike a computer algorithm, we step foot in the homes and take note of condition, and factor in applicable improvements or upgrades. 

I’ve seen many cases where a home’s third floor, basement, or additional room had been completed since its last sale, but the tax record didn’t even reflect these changes—again, Zestimates depend heavily on tax records. A Realtor will discover those discrepancies in square footage.

The best way to get an accurate home valuation is to meet with a competent real estate professional who knows the local market and has been inside countless homes in that area. When we come out to your home, we can do add-backs and takeaways just like a prudent appraiser would, supplying you with a highly accurate estimate of your home’s market value. 

You need to get the best price possible so that you can sell for the maximum dollar in your time frame. At Exit First Realty, we want to help you achieve your real estate goals, and part of that means ensuring you understand your home valuation; we’ll come out to the house for a walk-through, after which we’ll leave you the necessary information in writing so that you have a fair and accurate valuation. 

If you’d like to schedule a home evaluation, give us a call or check out our website. As always, reach out with any questions regarding this topic or real estate in general; we’re here to be a resource. Remember: It’s not the market, it’s the marketing that makes the difference.