Don’t Trust Zillow’s Home Values

Can you rely on Zestimates? Sellers like to think that they should price their homes according to this number, but these valuations are usually inaccurate.

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

Today I wanted to talk about the famous Zillow Zestimate. Are Zestimates accurate? I would argue that they almost never are.

Many homeowners tend to think of Zillow as the holy grail for home values, but did you know that Zillow’s CEO himself, Spencer Rascoff, can attest to the inaccuracies of the Zestimate? On February 29th of this year, he sold his home for $1,050,000. The Zestimate on his home from his own company was $1,750,000 — more than 40% off from his sale price!

Zestimates are almost never accurate.

Why is the Zestimate so inaccurate? A Zestimate uses a computer-generated algorithm that pulls in data to give you an estimate on the value of your house. This algorithm, however, cannot account for the intangible and local characteristics of your home. For example, Zillow does not factor in any upgrades you’ve made to your home, its layout, or its proximity to surrounding neighborhoods that may impact its value. The Zestimate is a good conversation-starter for home values, but it is far from the final word on your home’s actual market value.

What should you do in order to get an accurate assessment of your home’s value? The best way to determine a property’s value is to talk to an experienced professional agent who will do the research, find comparable sales, physically assess the property, and then analyze the data.

When you're selling your home, pricing it properly and understanding the true market value from the beginning are two of the most important things you can do.

If you have questions about pricing your home properly for the market or would like an accurate assessment of your home’s value in today’s market, give me a call or send me an email. I’d be happy to help you!

Zillow’s Accuracy in Florida

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

Can Zillow give you an accurate home evaluation? Many people use this site to get an estimate on their homes. However, Zillow is usually 5% to 15% off for property evaluations. Zillow cannot account for many factors that assign value to a property.

• Zillow does not account for relative location. If you have a home a block away from a more valuable neighborhood, Zillow will not accurately identify this factor. For example, take a West Miami home a block away from 57th avenue in Coral Gables. Zillow will pull information from Coral Gables instead of West Miami to price your home.
• Zillow does not account for boundaries nor natural or artificial barriers. This includes canals and highways. Miami Springs and Hialeah are separated by a canal, for instance. Additionally, Zillow does not account for quality and age of construction, finishes, or painting.
• Zillow does not account for layout or design. Some homes have a better layout or design compared to others. Buyers, for instance, may be looking for modernity in homes.
• Zillow does not account for property types. Even when you have two different types of property, such as a townhouse versus a single family home, Zillow often assumes they’re the same because of property size. Zillow could price them the same, despite the differences.
• Zillow does not account for buyer traffic, taste and trends. Zillow doesn’t know what buyers are looking for. The site doesn’t examine trends.

To get an accurate home estimate, hire a Realtor for a physical evaluation. This Realtor should know the area and know how to price. This process is called the broker’s opinion of value. That's why we’re here! If you’re looking to buy or sell, give us a call or email! We would love to be your area real estate resource!