Often misunderstood by the public: What is a Zillow Zestimate and Is a Zillow Zestimate Accurate?
Zillow is a great real estate tool and used by many who are researching real estate.
92% of people who are looking to buy or sell a home or rent start online before reaching out to a real estate professional, so getting accurate info online to make good decisions is key.
The #1 used tool used by buyers, sellers and renters is Zillow.
A tool Zillow has to determine home values and rental rates is a Zestimate. The Zestimate is often misunderstood by people and NOT always accurate.
Zillow can run data of past home sales and home listed in a neighborhood to determine value. What Zillow cannot see is the condition of a home, the accuracy of the date pulled from public records. Therefore Zillow can be WAY OFF in giving a Zestimate of an estimated value of a home.
So relying on the Zestimate to figure out what your home is worth can give one a false sense of the accuracy of ones home value.
What is a Zestimate? (taken straight from Zillow which you can find at the bottom footer of the Zillow site)
The Zestimate® home valuation is Zillow’s estimated market value, computed using a proprietary formula. It is not an appraisal. It is a starting point in determining a home’s value. The Zestimate is calculated from public and user submitted data; your real estate agent or appraiser physically inspects the home and takes special features, location, and market conditions into account. We encourage buyers, sellers, and homeowners to supplement Zillow’s information by doing other research such as:
- Getting a comparative market analysis (CMA) from a real estate agent
- Getting an appraisal from a professional appraiser
- Visiting the house (whenever possible)
Zillow also produces a Zestimate forecast, which is Zillow’s prediction of a home’s Zestimate one year from now, based on current home and market information. Learn more about the Zestimate forecast.
Zillow also provides a Rent Zestimate estimated monthly rental price. Learn more about the Rent Zestimate.
Zillow Zestimate Accurancy in Pima County Arizona
If you download the spreadsheet on Zillow for accuracy you will see in Pima County Arizona 63% of homes sold within 5% of the Zillow Zestimate.
The range 91.6% of homes sell for based on the Zillow Zestimate is 20% plus or minus the Zestimate. THIS IS BIG RANGE!
20% is a huge difference in price from the Zillow Zestimate.
For example: If the Zillow Zestimate was $150,000, based on the Zillow Zestimate statistics if your home sold for 20% less, which 91.6% do, your homes true value would be $120,000.
BOTTOM LINE ABOUT ZILLOW ZESTIMATES
Don’t get hung up on the Zillow Zestimate as to the true value of your home. There are many other key factors that go into a homes value that Zillow cannot see the condition of the home.