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The Truth About Zestimates

The Truth About Zestimates

Debunking Zillow’s Algorithm

Despite society’s continued reliance on Zillow to determine their sale price, the Zestimates are generally inaccurate – Here’s why:

While Zillow pulls a lot of data, it pulls too much data. In addition to the regular sales in your community, Zillow also pulls data from short sales and foreclosures. They then compile an average based on this data, which is obviously not very reflective of what your home is probably worth.

Despite pulling all this data, the one piece of data that Zillow does not factor in – which is extremely important – is condition.

Let’s say there are two homes with the same square footage. Your neighbor’s home just sold, but needs MAJOR remodeling. Whereas your home is already beautifully remodeled. Well, Zillow will just see how similar the homes are on paper, and try to compare them as such. That is why Zillow is only accurate about 5-10% of the time.

In my experience, I’ve sold homes for $100,000 more than the Zestimate, and I’ve also sold homes for $100,000 less than the Zestimate.

So, overall I would say that the Zestimate is largely inaccurate. If you want a solid estimate of what your home is worth, have a real estate professional pull some close comparables, understand where you are in the market, and what the market is doing.

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mdelena

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