Are Zestimates accurate? Many buyers and sellers these days turn to the internet as their first source of information, and a large majority go online to Zillow to find out what a home is “worth.” Unfortunately, this is not the most reliable or accurate source of data and more often than not, the Zestimates provided on Zillow is way off the mark!
Did you know that websites such as Zillow determine a property’s value based on an automated valuation model or AVM? This method of calculation uses the basic property specifications such as the number of bedrooms and bathrooms, square footage, lot size, tax records and overall market trends to come up with a Zestimate of value. It does not take into account the type of sale (foreclosure, short sale, non-MLS sale, etc) and it also does not account for differences in property types (condo, townhome, single family home, etc). This automated method of calculation is exactly why the Zestimate is not reliable or trustworthy because it does not properly analyze values in the neighborhood, upgrades, condition, location within the community, etc.
There are many variables when it comes to pricing a home and that is why it is so important to turn to a true professional to find out what your home is worth! An experienced, local Realtor will not only look at the big picture, but they will also narrow things down and consider the features that make your home special in order to come up with an estimated property value. They will offer an estimate of value based on all of the variables including recently sold properties of similar size, upgrades, location and condition. An automated method of calculation cannot possibly account for these variables and that is why the Zestimate is almost always wrong. A true professional will be able to provide you with a much more accurate representation of value, whereas Zillow is simply using a math equation to come up with a number based on nothing more than other numbers.
If you truly want to know how much a home is worth, then please don’t trust a website to give you an estimate of value. Are Zestimates on Zillow accurate? I would have to answer that question with no. A Zestimate will carry very little weight because it is not backed up by all of the applicable data and important details. Only a Realtor or a licensed appraiser can provide you with a more accurate property valuation.
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