When it comes time to sell your home who will you turn to for answers? Will it be an experienced real estate professional, or the internet?
I often have clients tell me they already know the value of their home based on information they have seen on Zillow or other home valuation websites. The question is, just how accurate is that information?
According to Zillow, in Maricopa County, AZ, Zillow's Zestimate is only within 10% of the sales price of homes 49% of the time. That means that more than half the time their Zestimate is off by more than 10%. That can mean a big difference to you not only in the sales price, but also in the amount of time it takes to get your home sold.
Although they pull information from numerous public record sources to compile the data displayed on these websites, and data is updated frequently, it can not give a completely accurate reflection of your home's true value. They haven't had the opportunity to come inside your home and see the finishes you have used, upgrades you have made and attention to detail you have put into making your home special. They are also not familiar with the local real estate market, what local buyers are looking for, special features of your property in relationship to the area and sales trends that may affect the sale of your home.
What is comes down to is that real estate local! I'm not just talking about statewide, or citywide, but community wide as well. The only people who can truly give you an accurate estimate of the value of your home, and what you can reasonably expect to sell your home for in today's market, are a licensed Realtor or a licensed Real Estate Appraisor who are familiar with the area in which you live.
A licensed real estate professional will not only look at your home, but they will also consider other homes that have recently sold, and your competition that is currently on the market. They will take into account special features of your home, your neighborhood, and the surrounding area. They will also be able to share some insight with you about how you can improve the salability of your home.
Here is a great video from Zillow that explains how they get their information and how accurate it is.
Bonny,
What Zillow does not make public is their whole existence was formed to sell ad revenue. What does that tell you about the accuracy.
You make some great valid points.
I personally do not care much for Zillow.
In this type of market your professional advice should outweigh zillow.
Great Post
I agree. Zillow is far from accurate and people sometimes get the wrong idea of actual value of a home by trusting these sites. It makes it tough with appraisals as well because when we refinance people get the wrong idea and are upset if it comes in lower. Good times for all to be had.
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