Why Zestimates Aren’t Always Accurate
As a homeowner or potential buyer, you may have found your way onto the popular home site Zillow.com. If you spent some time searching around on the site, you also may have seen the term “zestimate” show up on each property listing. Keep reading to learn more about what a Zestimate is and why they aren’t always the most accurate indicator of home value from the experts at Hudler Homes.
What is Zillow?
Zillow is the leading real estate and rental marketplace that provides data to consumers on property prices throughout the country. The Zillow database houses information on more than 110 million properties throughout the United States. It’s a popular platform for potential buyers to turn to when they are just starting their home buying journey.
What is a Zestimate?
Each Zillow property listing includes a “Zestimate” which is Zillow’s proprietary home valuation tool. Zillow’s platform generates Zestimates based on how much public and user-submitted data is available in a given area. So for example, if county records do not reflect an accurate number of bedrooms on a given property, then Zillow will be unable to give a proper Zestimate for the property based on comparables.
What Factors Go Into a Zestimate?
As we mentioned above, most Zestimates are determined based on public and user-submitted data. But there are several other factors that can determine how much a home sells for, like:
Estimated Home Value: This is how much your home may sell based on what other home’s in your area are selling for.
Market Value: This is how much money actual buyers would be willing to pay for your home.
List Price: A homeowner may establish a list price for their home without considering market value.
How Accurate is a Zestimate?
If you want to make an offer on a home, or maybe you’re considering what price to list your home for, we do not recommend going off your property’s Zestimate alone. Zillow even acknowledges on their website page that a home’s Zestimate page has a median error rate of up to 7.5%. When it comes to listing your property, that error rate can make a huge difference! You always want to work with a licensed real estate professional when buying or selling your home to ensure you are not losing money in a real estate transaction.
Work with Hudler Homes
Are you thinking of buying or selling a home this summer? You want to be sure you are working with a licensed and experienced real estate professional. The right real estate agent will guide you through the complicated process of pricing your home correctly, marketing your property well, managing showings, and everything in between!
If you are looking for a real estate agent who knows the Baltimore area and can help you explore your options, I’d love to meet with you. Reach out to me through my website or give me a call at (302) 545-8569, and follow my blog for more home buying tips!