How Accurate Are Zillow Home Value Estimates

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How Accurate Are Zillow Home Value
Estimates? http//dcrealestateguru.com/how-accurat
e-are-zillow-home-value-estimates/
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When Zillow first launched in 2005, it shook the
real estate industry for its ability to provide
instant appraisals
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Zillows search engines allows users type in an
address and see an estimated value of any home
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More people began to trust Zillow and it grew to
become an indispensable tool for homebuyers and
sellers
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As a REAL ESTATE AGENT, my clients often ask me
about the accuracy of the Zillow home value
estimates, which Zillow calls ZESTIMATES
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Why You Cant Trust Zillow Home Value Estimates
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Zillows estimates come from an automated system
Doesnt have the ability to think for itself
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This is the reason why oftentimes its home value
estimates can be wildly off
Sometimes to the tune of thousands of dollars
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Because Zillow is a system, it cant take into
consideration variations in the property that
would differentiate an average home to a
renovated home full of upgrades
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Margin Of Error And Formula Used
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On its website, Zillow claims that it has a
median error rate of 5.
They also claim that the Zestimate are merely
starting points that can be used to determine the
actual market value of a property
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The Zillow system uses algorithms that consider
Property tax assessments
Recent sales
User-submitted data
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How Zillow Determines The Market Value Of A Home
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One of the biggest problems about the formula
used by Zillow is that it takes into
consideration a homes assessed value
But the truth of the matter is that a homes
assessed value rarely has any correlation to
market value
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Why Zillow Estimates Cant Be Relied On
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Zillow estimates may actually work
Discrepancies as much as 50 higher than actual
market value
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These numbers, known as comparable sales, are a
major deciding factor when real estate
professionals price a home
Knowing how much nearby homes sold for is also
important in both buying and selling
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For example, if you are living in an area where
all the homes are similar, same price range, and
none have been renovated, then this is a scenario
where you can apply comparable sales without
analyzing other factors
Considering comparable sales needs a human aspect
to it
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Never Rely Solely On Zillow As A Buyer Or Seller
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Buyers and sellers should never rely on the
Zillow tool alone
Even the website itself tells you that the
estimates are only a starting point
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Why Realtors Are Still Indispensable
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Despite the popularity and prevalence of online
real estate tools such as Zillow, its important
to know that these systems cant replace the work
of realtors
Real estate professionals use different methods
to appraise the value of a home, and can even
provide critical insight on how one comparable
sale plays a role in appraising the next property
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Realtors also complete a comparative market
analysis (CMA) when appraising a home
The data used by Zillow is far too broad
These figures will come as a shock to the seller,
especially when they are presented with figures
that are as much as 50,000 lower than what
Zillow says their home is worth. See what I mean?
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You Still Need An Agent For Accuracy
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Every home seller and buyer needs to understand
that Zillow is a system tasked with estimating
hundreds of millions of homes across America
Simply impossible for them to accurately know the
exact value of each of those homes
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How You Can Make The Most Out Of Zillow
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The Zillow website is very well built, and all
the features can come in handy to buyers,
sellers, and real estate agents EXCEPT the Zillow
estimates
Zillow has excellent integration with Bing maps
Information about a property
Bedroom count, lot size, age, and square footage
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The Final Word On Zillow
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Zillow might not be able to provide true market
value of a home, the estimates can serve as a
good starting point
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Zillow will never be able to replace the job of a
professional realtor in providing good insight
and more accurate values
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Contact me for a more thorough evaluation of your
home
www.dcrealestateguru.com/sellers