Today, I’m talking about Zillow. Many explain to us Zillow placed a certain value on a property. However, Zillow’s home valuations are off 90% of the time. Why is Zillow so inaccurate?
First of all, Zillow doesn’t take what’s inside the house into account. Zillow uses an algorithm. It cannot see whether your home has new granite countertops or old Formica from 1962. Obviously, what’s inside the house matters to the value.
Zillow also doesn’t have accurate data on your area. Zillow doesn’t know all the sales in the neighborhood. Sometimes, homes on Zillow are still listed as active properties when they actually sold two years ago. Zillow simply doesn’t have the accurate, up-to-date information that our MLS has and that a good agent can verify.
Another thing Zillow does not take into account is the nature of the market. If a home is in an escalating market, or seller’s market, the home might be worth more that what Zillow says. If a home is in a declining market, the home might be worth less than what Zillow says. Zillow will not know the nature of a local market the way a good real estate agent would.
I like Zillow. It’s a great place to advertise and market homes. It might be a great starting point, but it is not the place to find an accurate value of your home. I strongly suggest talking to an agent to get a more accurate assessment of what’s going on in your market.
If you have any questions, give me a call or send me an email. I look forward to hearing from you!
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