Can you really depend on Zillow to figure out what a home is worth in the current market? I would say no, and there are a few reasons why.
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I get a lot of questions about Zillow and the estimates the site comes up with for a home’s value. Can you really trust that number?
When Zillow determines home value, they use an algorithm that pulls tax record information, square footage, and some major attributes of your house before it spits out a number.
The problem is that no one from Zillow is going into your house. Zillow has no idea if a house was recently renovated or if the home is in a state of disrepair.
Zillow can get close to estimating your market value. The Wall Street Journal found that on average, Zillow’s estimates are 7.8% off the actual sales price. That may not seem like a lot, but a 7.8% mistake on a $400,000 house means missing out on over $30,000. If you rely solely on automated estimates like those found on Zillow, you could either price your home way too high or sell yourself short; neither is a viable option.
In a Wall Street Journal article, Zillow executives explained that their estimates are meant to be a starting point so that people can get an idea of what homes are selling for in a certain area or neighborhood. However, if you are buying or selling a home, you have to have accurate information that’s tailored to your specific property to make sure you’re making a good decision.
When Zillow determines home value, they use an algorithm that pulls tax record information, square footage, and some major attributes of your house before it spits out a number.
The problem is that no one from Zillow is going into your house. Zillow has no idea if a house was recently renovated or if the home is in a state of disrepair.
Zillow can get close to estimating your market value. The Wall Street Journal found that on average, Zillow’s estimates are 7.8% off the actual sales price. That may not seem like a lot, but a 7.8% mistake on a $400,000 house means missing out on over $30,000. If you rely solely on automated estimates like those found on Zillow, you could either price your home way too high or sell yourself short; neither is a viable option.
In a Wall Street Journal article, Zillow executives explained that their estimates are meant to be a starting point so that people can get an idea of what homes are selling for in a certain area or neighborhood. However, if you are buying or selling a home, you have to have accurate information that’s tailored to your specific property to make sure you’re making a good decision.
Pricing your home correctly is absolutely crucial.
Get in touch with a real estate professional. He or she can give you an analysis specifically based on your home. A real estate agent will be able to take all of the upgrades and attributes of your home into account in order to come up with an accurate market price.
It is important to know the true value of a home. As a buyer, you don’t want to overpay for a home because you weren’t able to get a proper analysis. As a seller, if you price your home correctly from the very start, you are more likely to net a higher sales price. If you overprice your home and have to go through a number of price reductions, your home will sit on the market. The longer a home is on the market the less leverage a seller has in a negotiation and it’s likely you will end up selling your home for less money.
Pricing your home correctly is absolutely crucial. Remember, while Zillow is often off by 7% to 8%, that can mean a difference of $20,000 to $50,000 on your home sale. That kind of margin of error is simply too big to rely on when pricing your home.
If you have any other questions about pricing or the home selling process, give me a call or send me an email. I would be happy to help you!
It is important to know the true value of a home. As a buyer, you don’t want to overpay for a home because you weren’t able to get a proper analysis. As a seller, if you price your home correctly from the very start, you are more likely to net a higher sales price. If you overprice your home and have to go through a number of price reductions, your home will sit on the market. The longer a home is on the market the less leverage a seller has in a negotiation and it’s likely you will end up selling your home for less money.
Pricing your home correctly is absolutely crucial. Remember, while Zillow is often off by 7% to 8%, that can mean a difference of $20,000 to $50,000 on your home sale. That kind of margin of error is simply too big to rely on when pricing your home.
If you have any other questions about pricing or the home selling process, give me a call or send me an email. I would be happy to help you!
