Are Zillow's Zestimates of property value accurate?  The answer is very simple - NO!  That's why they are called "zestimates" and not estimates - because it is not reliable information.

Here's the problem.  Zillow uses a few factors to generate their zestimates, but those numbers do not reflect the condition of the home, location of home within the community, accurate recent sales figures, and accurate information on homes listed for sale in their system.  What I mean by the last part here is that a lot of sellers post their homes for sale on Zillow.  Then they go into the site periodically and add information to boost the Zestimate.  Jesse and I had one client log into his Zillow account on a daily basis and update his listing – and in two weeks the Zestimate increased by $40,000.  This is not reality, folks - it is Zil-ality.

The fact of the matter is that most people buying a home will need to get a loan.  This means that an appraisal will be required by the lending institution and in most cases, the house will have to appraise for the purchase price.  The appraiser will place a value on a home by using the Sales Comparison Approach, so he will look at sales within the last 3 months for homes of similar style and size in close proximity with similar amenities to the subject property.  - And He will not be using Zillow Zestimates.

So, how can a seller figure out what his home is worth?  He can ask a realtor to work up a Comparative Market Analysis (CMA).  Jesse and I offer this as a free service to anyone considering selling a home and we'll also project the net proceeds from the sale.  An accurate CMA will provide the seller with a true picture of the current market and will detail exactly where a house needs to be priced in order to sell.

Getting back to Zillow - all that I’m saying is that Zillow is a resource; not a reliable one, but a resource nonetheless and anyone looking at the information provided there should do so with reserve.

If you are considering selling your home, we are happy to provide you with a Free CMA or Market Snapshot.

Check out how to prepare your home for sale, or request our free brochure, Pricing and Preparing Your Home to Sell for Top Dollar.

Wishing you sunshine everyday and the home of your dreams,
Jeri