How Accurate are Zillow Zestimates? Here’s The Truth
In case you’ve visited their website and are wondering what does Zestimate mean on Zillow, it’s their unique, branded term for a rough estimation of a home’s value. However, a word of warning for those planning on selling or buying a property based on Zillow’s numbers: Zillow Zestimates are NOT the same as an appraisal!
Zillow Zestimates Aren’t Accurate Appraisals
I’m sorry to say, Zillow Zestimates aren’t very accurate. Zestimates are based on public and user-submitted data, which means homeowners can log onto Zillow and add any improvements or adjustments to their property that would improve its Zestimate and make it look like it’s worth more than it really is. Zillow has stated that Zestimates of homes in some regions of the country are off by more than 10%. This means if your home is worth $400,000, its Zestimate could be off by as much as $40,000. To most people, that’s a substantial difference.
How Does Zillow Calculate Zestimates?
Zillow uses regional data, tax records, and information they pull from listing agencies and brokerages. However, one of their primary way of calculating Zestimates is by enabling homeowners to update the information of their own homes. While this is helpful to stay current, it does mean some untrustworthy homeowners can provide unreliable information that overvalues their homes. Zillow is aware of this and that’s one of the reasons they combine homeowner information with county and tax records, etc. but it remains a reason why Zestimates are not as accurate an appraisal.
Zillow Zestimate vs Appraisal
According to Zillow’s website, a Zestimate is a starting point in determining a home’s value and it’s not as accurate as an appraisal by a professional. Even Zillow admits its Zestimates are not the same as appraisals and shouldn’t be used in place of one, for a variety of reasons (homeowners can fabricate factors in home value, the data might be outdated, etc.). If you want to know what your home is worth in the current market, do yourself a favor and trust a real estate professional like Leslie and the folks at KPT.
KPT Provides Accurate Property Appraisals
Be honest: You wouldn’t trust your health diagnosis to WebMD, would you? Then why trust the value of your home to some website that is easily manipulated? I invite you to send me your home’s Zestimate so I can compare it to recently sold homes in your area and see how accurate it is. If you want to create wealth for your future and your family, you owe it to yourself to let me help you determine the timing and price of your home sale.
If you’d like to take me up on this offer or have any real estate questions at all, don’t hesitate to contact us. I look forward to hearing from you soon!