Today we’ll explore what Zillow’s Zestimate feature actually is, and whether or not this web-based tool is an accurate way to determine home value.
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Zillow’s Zestimate feature is designed to give you an instant estimate of your home’s value, but is this web-based tool trustworthy?
My clients bring up Zestimates all the time when discussing how to price their listing, and today I’m going to tell you the same thing I share with them: Zillow’s Zestimates can be very inaccurate. Most of the people who take Zestimates seriously don’t understand how they actually work.
In reality, Zestimates generate their results from an algorithm that only takes basic public information into account. Zestimates can’t take more complex factors, like renovations and location, into account when assigning value to a property.
“No algorithm can replace the knowledge of local experts like those on our team.”
If your home is in a cookie-cutter neighborhood, a Zestimate may be able to more accurately estimate your property’s value. However, in most other scenarios, a Zestimate will tend to be way off.
Ultimately, your best bet in determining home value is to partner with an experienced real estate team like mine. When clients hire us to guide them toward their real estate goals, one of the first services we provide is a custom valuation. This allows us to give clients a more accurate idea of what their home may really be worth. No algorithm can replace the knowledge of local experts like those on our team.
If you have any other questions or would like more information, feel free to give us an email. We look forward to hearing from you soon.
