Online Estimates are a Joke....
People throughout the United States have begun relying on “Zestimates” as their one and only source for getting their home’s current value. Sadly, as pointed out by the mainstream media below, this information can often be drastically wrong.
In fact, in the United States, the median error rate is 5%. This can absolutely raise some eyebrows when people go to enter in their home’s information for an automated home valuation.
According to the LA Times, Zillow’s very own CEO Spencer Rascoff answered that they're "a good starting point" but that nationwide "Zestimates" have a "median error rate" of about 8%.
Los Angeles Times:
US News Real Estate:
1. Basic Information Can be Inaccurate
User inputted data does contribute to the "Zestimate", information such as how many bedrooms/bathrooms make up the home, square footage of the home, and the lot size has to be accurate! The more information Zillow already has about your home the better... if it's a newer construction or first time inputted into Zillow, be CAREFUL!
Source: Zillow Advice Thread
2. Mistakes or Omissions in Sales Prices or Property Tax Records Can Happen
This is a BIG one. Property tax records are a part of the home valuation process that should not be overlooked. Just like inaccurate basic information, inaccurate date of sale or past sale prices affect your home's valuation. See the image below for an example.
3. Upgrades and Unique Features that are Unaccounted for
To keep things simple... Zillow won't know what you don't tell Zillow. REPORT your home improvements or upgrades to the property. Something that may seem like a quick and easy fix to your home may, in fact, affect your home's value when it comes to trying to sell your home. There is a misconception that if you did, in fact, update your kitchen or remodel the inside doesn't necessarily mean it's worth $100,000 more than what Zillow says. Upgrades and additions to the home greatly depend on what other homes in your market are like.
4. Housing Turnover Rate
The turnover rate for the housing market is a simple one. The hotter the market (the more homes that are selling and the more information Zillow has about the homes in your area) the more accurate the Zestimate will be!
5. Major Changes to the Zillow Algorithm
If you are in the market to sell your home the Zillow Algorithm is something you should pay attention to. Any adjustments to this can affect the value of your home, but Zillow doesn't adjust their algorithm very often. According to Investopedia.com, Zillow's algorithm was adjusted and it brought the National average two points down from last year to a median error of 6%.
As a proud member of the DFW community who actually lives here, works here and sells homes here, I would be happy to send you a free report of exactly what your home is worth.
Technology is awesome, but when it comes to the value of your largest financial asset, the accuracy of your home's value matters.
Colleen, Paul and Elena, Thank you for all of your help in selling my brother’s house at 1008 Becker. Penny Farrall told me she had located a good realtor for me and she was so on target. It is hard... Read full review
Paul and Colleen Tosello have exceeded our expectations of realtors in every way - in fact, over the course of our experience with them they served as so much more! We relocated to Keller on a job transfer and... Read full review
Paul and Colleen were absolutely wonderful. We started our home buying process while living across the country. They both met with us numerous times when we would fly in, over zoom meetings, as well as with our... Read full review
Thank you all for your help!
Colleen, Paul and Elena,
Thank you for all of your help in selling my brother’s house at 1008 Becker. Penny Farrall told me she had located a good realtor for me and she was so on target.
It is hard selling a piece of property that isn’t yours, is filled with stuff and is 2,000 miles away. You all made it so much easier.
Paul – you were spot on with the sales price and marketing. There were so many offers to choose from.
Elena – I appreciated all of your communication with me throughout the process as well as checking on the vacant house from time to time.
Colleen – we had the most interaction with each other over the last several months. I so appreciated your calm, knowledgeable approach as you guided me through the various legs of the journey.
Paul and Colleen Tosello have exceeded our expectations of realtors in every way - in fact, over the course of our experience with them they served as so much more!
We relocated to Keller on a job transfer and chose Paul and Colleen after being referred through the Ramsey network. Almost immediately, we received a call from Paul. He spent 45 minutes on the phone with us genuinely investing in getting to know us and learning what our needs were. We were blown away by how kind and professional he was and committed to them.
We briefly explored the existing home market but ended up building. They expertly guided us through the process, gave us sound advice and made sure the build was a good investment for our family. Over the last year, Colleen has been a tireless advocate in dealing with the builder and our mortgage company.
Colleen did all that while also giving us great advice on many different questions we had about the area and other services (schools, churches, contractors, childcare, etc.). We are incredibly thankful for their professionalism and guidance - we couldn’t have done it without them!
Hands down the best realtor experience we’ve ever had in our 10 (yes, 10) moves! Highly recommend!!
Professionalism, Quality, Responsiveness, Value
Paul and Colleen were absolutely wonderful. We started our home buying process while living across the country. They both met with us numerous times when we would fly in, over zoom meetings, as well as with our builder. Colleen and Paul know the area inside and out and have helped us (and still are!!) with getting us involved in the community. Absolutely wonderful team. We highly recommend them. We consider them dear to our hearts. Thank you for everything.