You should not rely on Zillow’s Zestimates, and there are three key reasons why.
Whether you are a buyer or a seller, there are three reasons you should beware of Zillow’s Zestimates.
1. Zillow can’t touch the human element of an evaluation. Have you ever wondered if they account for your location? Well, they do not. They are unable to account for whether a home is on the water or not on the water, or whether it has a view of the city or backs up to Eagle Road. If they don’t account for that type of thing, do you think they will account for the $20,000 roof improvement you did last month or the $100,000 kitchen remodel you did last year? Unfortunately, they will not.
2. Zestimates can be manipulated by the homeowner. Homeowners are allowed to change certain details of their home, such as the square footage and the bedroom/bathroom count, and add false or inaccurate data that can skew the truth of a home evaluation.
3. Zillow can be off by 10% to 20%. In the U.S. it’s typically closer to 20%, and this fact is literally written into the site’s public disclosure. In fact, during the first quarter of 2016, Inman News reported that the CEO of Zillow himself sold a property in Seattle for $1,050,000, which was 40% less than that property’s Zestimate of $1,750,000. That’s a $700,000 discrepancy!
The bottom line is you need to talk to a professional to estimate a home’s worth. You would not trust a significant medical diagnosis to WebMD, would you? No—you would see a doctor. Or more likely, you would hire a specialist.
Don’t risk one of the biggest transactions of your life by relying on a Zestimate. If you use Zillow as a tool to gauge home values, we invite you to click the link above to receive our free home evaluation. We can give you an accurate interpretation of your home’s value.
There is no way an algorithm can trump a real, live, dedicated professional who lives, walks, and breathes the many markets within our greater marketplace.
If you have any other real estate questions or you are thinking of buying or selling a home, please feel free to reach out to us. It would be our pleasure to serve you.