Zestimates need to be taken with a grain of salt. Taking their value too seriously could cause big problems for your transaction.
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Many people don’t realize that Zillow’s Zestimate feature can actually be fairly inaccurate. As an online tool designed to automatically estimate a home’s value, it should be taken with a grain of salt.
The Zestimate is found using an algorithm based on public data, and shouldn’t be considered as a replacement for a real home valuation.
Take the example of Zillow’s own CEO, who sold his house for $1.05 million. His Zestimate, however, was off significantly—it placed his home at a value of $1.75 million.
Personally, I think it’s a little embarrassing that the CEO himself was negatively impacted by a tool from his own company.
The CEO of Zillow himself was negatively impacted by the Zestimate.
It just goes to show that there is no substitute for a great, knowledgeable agent. An agent who understands your market, your neighborhood, what local properties are actually selling for, and who frequently works with real buyers is going to be your best resource.
In order to get an accurate home valuation, consult with your Realtor and have them do a walkthrough of your home.
Ultimately, websites like Zillow are just for reference—they won’t be able to correctly price your home. So don’t overreact when you get a number back from an online tool. Their estimations are almost always either too high or too low.
There are things that Zillow simply isn’t able to detect about a property that real, local agents will. In our area, for example, lakefront properties have a much higher worth than others.
The Zestimate simply doesn’t take these distinctions into account. In fact, a lawsuit has been filed against Zillow for their Zestimate’s inaccurate information. The person filing the suit has requested Zillow remove the Zestimate from their home listing, which they claim was greatly damaged by the tool.
The woman’s property, which is on a golf course, was given a Zestimate of $100,000 less than the valuation she received from her agent.
It isn’t hard to see why it’s so important to work with professionals, instead.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
