Today I’m discussing why Zestimiates are an inaccurate projection of your home’s value.
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Today we’re going to discuss Zestimates, why they’re so inaccurate, and why you can’t trust them. An auto-estimator could give you an estimate that is too high or too low. Example: The CEO of Zillow’s home sold for 40% less than its Zestimate.
The Zillow algorithm pulls information from tax records and previous MLS listings on the house. That alone is an issue because many times the county records’ square footage is wrong and the old listing information may not be up to date. Zestimates don’t factor in any updates you’ve made or the location of the property. It makes a difference whether your home is right near a highway or in the middle of a subdivision. Another thing not factored into the Zestimate is the functionality of the floorplan, which can also vary the value of a house.
The CEO of Zillow’s home sold for 40% less than its Zestimate.
A computer program simply cannot know all the relevant information; no auto-estimator can give an exact value. Also, your property has an estimate range, not just a single number value. A home is one of the largest investments most people make in their entire lives. Make sure to reach out to an agent to do a thorough market analysis to determine your house’s true value range.
If you have any other questions about Zestimates or would like to know the value of your home, reach out to us by phone or email. If you have anything you’d like us to address in these blog messages in the future, send us those ideas and questions. We would love to help you any way we can.