Las Vegas, Nevada – Have you recently tried selling your home, but it didn’t sell? Did you use Zillow to determine the value of your home? You are not alone.
In 2006, Zillow was launched and has become a leading Real Estate web site with a database of over 110 million US homes. One of the reasons Zillow has become so popular, is due to the fact homeowners can enter their property address and receive an instant “Zestimate” which is essentially an “estimate” of how much their home may be worth. Many homeowners get excited when they see Zillow’s “Zestimate” however, is it accurate?
Real Estate agents across the nation are complaining about Zillow’s “Zestimate” and how it may be painting an inaccurate picture in the minds of Sellers regarding the value of their homes. Additionally, many homeowners do not understand why the Zestimate may not reflect an accurate determination of value.
Here are some thoughts that hopefully separate fact from fiction.
Zillow is a computer program. It works with algorithms and numbers. Zillow reviews a series of sales within a geographical area, and tries to come up with a value based upon recent closings in addition to using current homes listed for sale. Sounds logical, however, there are other factors to consider that determine the value of a home.
LOCATION: I recently met with a Seller who was quick to show me the “Zestimate” of his home. Zillow showed his home was worth $50,000 more than the highest comp. His home was 2500 square feet, and in a non-gated community. Additionally, the subdivision next to his was a gated community with 3500-4200 square foot homes. On a map, these two subdivisions were located next to each other, side by side. Was Zillow averaging the sales prices of these two subdivisions? You simply cannot compare a 2500 sq. ft. home with a 4200 sq. ft. home in a gated community. The same thing happened with a Seller in Sun City Summerlin. He wanted to sell his home, and when I arrived to meet with him, he handed me a “Zestimate” which showed his home was worth $35,000 more than the highest comp. We looked carefully at the comps and I explained to him that the houses directly across the street from his were located on the golf course with stunning panoramic views. Homes with these types of views usually command a higher sale price, and when purchased as “new” from a builder, you usually pay a substantial “lot premium” for these locations. Was Zillow averaging the price per square foot values of these homes?
UPGRADES: Have you visited any model homes lately and looked at brand new homes for sale? Things have changed! Many builders now offer granite countertops as a standard feature. Additionally, today’s standard kitchen cabinetry includes options like maple, cherry, etc. Stainless steel appliances are also standard with many builders. What’s the point? If your home has tile kitchen countertops, vinyl flooring, white appliances and semi-worn carpet, is it worth the same as a neighbor down the street who has upgraded his home with stainless appliances, granite countertops and tile floors?
Zillow is a computer program. Zillow cannot walk through your home and see your upgrades, paint colors, or the condition of your carpet. If a model match home down the street sells for $400,000 and has been upgraded with every modern feature, this doesn’t mean your home is worth the same. Maybe in theory you can dispute the value of the upgrades and how much they add to the value of a home, however, Buyers tend to place offers on homes that have the best upgrades and are in the best condition. Homes that look outdated still sell; however, will a Buyer be willing to pay top dollar for antiquated upgrades and old appliances, etc.?
The best way to determine the value of your home is to meet with an experienced Real Estate Agent. Bill and Francoise Myers, owners of The Myers Team with Simply Vegas Real Estate are Top Las Vegas Realtors ® who specialize in seller representation. They will come to your home and walk through it with you explaining how to get the most amount of money when it’s time to sell.
Contact The Myers Team at 702-677-4343
For TRADITIONAL SALES, click: http://www.LasVegasList4Less.com
For SHORT SALES, click: http://www.NevadaShortSaleInfo.com