Deciphering Zillow’s Zestimates

What Should You Know About Zillow’s Zestimates? [Video]


As a seller, you should be wary of trusting a Zestimate to give you an accurate valuation of your home.

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What is a Zestimate?

Essentially, it’s a computer algorithm that calculates the sales of other homes in your local vicinity and factors like square footage, bedroom count, etc. to provide an estimated appraisal of your home. There are holes in this method of appraisal, though.

For instance, a Zestimate doesn’t physically go into your home. It can’t take into account any upgrades you have made to it, or if you have any sort of lot premium. Sometimes it’s accurate, but most times it’s not even close to what the true value of a home is

 

“You should never trust a computer-generated number from Zillow.”

 

This is why you should never trust a computer-generated number from Zillow. You should always have a trusted real estate agent come into your home and go more in-depth about the other comparable home sales in your area so you can both compare and contrast where your home fits and determine what a buyer would be willing to pay for it in today’s market.

If you have any questions about Zillow’s Zestimates or are thinking of buying or selling a home in our market, please don’t hesitate to reach out to me. I’d be happy to help you.

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