Ever Wonder About Zestimates?
What is a Zestimate? Zillow has created estimates of nearly 100 million homes in the United States. Zillow named those estimates “Zestimates.”
According to Zillow, to help determine a price Zestimate uses:
- Home square footage, location, the number of bathrooms, and other details.
- Active listing information like listing price, description, comparable homes in the area, days on the market
- Off-market data such as tax assessments and prior sales
- Market trends and figures for seasonal demand
It is important that Zillow obtains this information from online county and township tax cards, which frequently contain inaccurate data.
Taxable and state equalized values become uncapped upon sale. If a home has not sold in many years, the numbers will not be up to date. Those figures will likely not accurately reflect market value.
Improvements Create Value
Improvements made to your home can increase the value. Unless the local tax authority has changed property tax to reflect the upgrades, Zillow or other online estimators do not have access to that information.
So your home value estimate could be off by tens of thousands of dollars.
Zillow’s accuracy also depends on your local housing market. Its Zestimates are far less accurate in states and cities with fewer home sales and active listings.
They serve only to provide an idea of potential value for homeowners, buyers, and sellers, according to Investopedia.
Online estimator tools are a good starting point to help determine the value of a home. Those estimates can sometimes help give a ball park idea of price.
“A licensed realtor can provide you with the most accurate valuation. A real estate agent evaluates your home, values its upgrades and renovations, and compares it to the most recent sales in the area,” according to Steve Nicastro, Content Team Lead at Clever Real Estate.
Determine Your Home’s Value
When you’re ready to get a more accurate home value estimate, work with an experienced local realtor. A real estate agent on the ground in a community is in the best position to know how much a property is likely to sell for.
Whether you’re a prospective buyer or seller, Tucker Benner Realty agent can help you conduct a CMA and determine a property’s value.
Contact us today to get connected with a great local agent for a free, no-obligation consultation.
Marilyn Tucker
