How Accurate is the Zillow Zestimate?5/23/2016
Hey Folks, Jason Williamson here, and one of the biggest questions on most people's minds when they are thinking about selling their home is, "What is my home worth?!?"
Now, of course, most people know about Zillow at this point and, quite honestly, their Zestimates have been the bain of Realtor's existence for years! It's a nice service they offer, and I'm sure they MEAN WELL. Unfortunately, it is near impossible for any algorithm to truly figure out what your home is worth in an ever changing real estate market. Zillow uses things like Recent Sales Data, Current Listings, and Public Records to calculate their "Zestimate".
While it may be somewhat close occasionally, there are LOTS of factors that the Zillow algorithm will never be able to consider. These mainly include the condition of the home as well as current market conditions. Thus, the Zestimates are sometimes Tens of Thousands of Dollars off base. The Zillow Algorithm can't accurately account for and differentiate one home with a Brand New, High End kitchen, Hardwood Floors, and Updated Bathrooms vs another home with a 1970's kitchen, Orange Shag Carpet and a Bathroom that has been Senior Citizen Proofed since the Eighties!
Zillow also will always have a hard time keeping up with current market conditions. Did a large corporation just move to town? Or leave? Have crime rates forced a mass exodus from City to Suburbs? Is there a new development attracting large amounts of people to a new area? All of these can change the market and the value of property very quickly and Zillow will never be able to account for these changes in a Real Time manner.
So, while Zillow is a FANTASTIC site for searching for homes and doing some initial research, it will never replace talking to an expert in the local market you are interested in. The BEST way to figure out what your home is worth always has been and always will be, speaking to a licensed Real Estate Agent. We are better able to help you because we have access to Critically Thinking Brains that are ALWAYS following local market conditions! Realtors know what the house down the street sold for MONTHS before Zillow. As well as 100 other factors going on in your area that may effect the value of your home. Real Estate Agents will always be your best resource if you are wondering, "What is My Home Worth?"
If you are looking for a Real Estate Agent in Saginaw, MI, Midland MI, or Bay City MI or the surrounding areas, I would be more than happy to help you figure out What Your Home is Worth! You can always reach me at 989-430-1772. And, if you'd like to get a head start, this site can give you some very good preliminary information about what is going on in the market around your home!
Thanks for taking the time to read this! If you ever have a question about anything Real Estate Related, I would be happy to help. You can always reach me at 989-430-1772 or my Contact page on this web site! Have an Awesome Day!
Jason Williamson, RE/MAX New Image, 1668 Midland Rd., Saginaw MI 48638