Today I want to talk for a quick minute about Zillow’s Zestimates and the problems that many people encounter when using them to get a value for your home.
A Zestimate is an estimated market value computed using a proprietary formula calculated from public and user-submitted data. There are two main problems with Zestimates:
1. The use of user-submitted data. This means that any homeowner can go into Zillow, alter the information about the home, and have that data used in Zillow’s algorithm. If your home is sold, this will then affect your neighbor’s value. This can lead to some big problems.
2. Zillow cannot see your home’s condition. They don’t know about the decor, the hardware, and the system in the home, which all greatly affect home value.
Zillow readily admits that their estimates can be off by 20% or more. In fact, we just have a home that we sold for $285,000 that had a Zestimate of only $240,000.
As you can see, a Zestimate is not an accurate home valuation at all. If you really want to know what your home is worth, please feel free to give me a call or send me an email. I would be glad to help and we look forward to hearing from you soon.