On Zillow, you’re able to get what’s called a ‘Zestimate,’ which is essentially an estimated value of your home. How accurate are Zillow’s estimates though? I’m sorry to say, but they’re not very precise.
According to Zillow, a Zestimate is merely a starting point in determining your home’s value, and certainly not akin to an appraisal. Zillow’s information is gathered from both public sources and user input, meaning that a homeowner could simply go in and alter info regarding updates, upgrades, or repairs to make their home seem worth more than it is. It’s fairly easy to tweak the data and thereby skew any ‘Zestimate’ of the home’s value.
Zillow even admits that in more than 75% of the areas they service, the data is off by a margin of more than 10%. So, if your home is worth approximately $500,000, the Zestimate could actually be $50,000 too low or $50,000 too high.
In more than 75% of the areas they service, their data is off by a margin of more than 10%.
In this sense, Zillow is sort of like WebMD; it’s fine to browse around online if your health-related questions aren’t too serious, but any serious health concern would immediately prompt you to call a medical professional in your area.
If you’re curious to know what your home is worth in today’s market, I encourage you to consult a real estate professional like myself. In fact, I invite you to send me your Zestimate. I’d be glad to look at the recent nearby home sales with you and determine just how accurate that Zestimate really is.
As always, reach out to us if you ever have questions on this or any other real estate-related topic! We’d be more than happy to help you.
