Today I’m sharing what I know to be true about Zillow’s popular tool, the Zestimate.
Here’s the basic principle of how a Zillow Zestimate works: Public information regarding a home is processed by an algorithm that determines a valuation for that home.
It uses any data that it can grab, including past sales and tax records. It can get you in the ballpark, but it will never be truly accurate. Why? It lacks common sense decision-making skills.
If you live in a cookie-cutter neighborhood, the algorithm’s valuation may be pretty close. However, Zillow has no way to factor in upgrades made to the home.
What are the conditions of the inside of a home? How many true bedrooms does it have? How does the landscaping look? What is the neighborhood like? The algorithm doesn’t explore those questions, but they each have an incredible impact on the value of a home.
Ignoring these variables means that Zestimates could be off by tens of thousands of dollars, if not more. The only way to get a true valuation is to have an experienced agent come out to your home—someone who can always be the boots-on-the-ground expert with hyperlocal knowledge.
A more fitting name for Zestimates would be ‘Guess-timates.’ At Legacy Group, we offer a more realistic experience for clients through our proven track record of selling more homes in the area than anybody else.
If you’re thinking about selling, please call or email us. We’d love to give you an accurate valuation.
