Even though a lot of people think that the value Zestimates place on their home is accurate, the truth is that this is one area that computers can’t replace people.
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What exactly is Zillow’s Zestimate? A lot of clients have called me with questions about them, so I thought I’d relay my overall feelings about them.
Zestimates are what we call an AVM, an automated valuation model. They use algorithms to pull data from the county public tax records and they look at legacy MLS sold, pending, active, expired, and cancelled data. They take that data and apply to each one of our homes.
The problem with the methods that Zestimates use to value your home is that a computer algorithm has never walked inside of your home. Zillow doesn’t know if your home smells like a pet, if your carpet needs replaced, if the roof needs to be replaced, or if your backyard is steep or gentle graded. The website can’t take into account various factors about your home’s upgrades, the neighborhood, the general traffic, or public events that may take place near the property.
Zestimates can be off when they value your home by as much as 20%. This is problematic because a lot of the public thinks that these are accurate, and they end up leaving a lot of money on the table or potentially overpaying for a home in certain situations.
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A Zestimate cannot walk into your home and check out the condition of the property.
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This is what I recommend: If you’re thinking very seriously about the value of your home or what a potential house might be worth, call Glennon Real Estate Experts and get a trusted professional who can do a real, thorough market analysis to make sure that you’re not leaving any money on the table.
I’ve found often that, oftentimes, the fees for our services more than compensate for the amount of money that people sometimes leave on the table when they sell their home as For Sale By Owner (FSBO). Most real estate agents sell fewer than seven homes a year. They really aren’t getting enough experience and practice selling homes to really know how to advise you on the 50-page contracts we have to deal with or to get you through the inspection process and make sure that the lender is properly doing their job, along with supplying the appraiser with the information they need to properly value a property.
I’ve found often that, oftentimes, the fees for our services more than compensate for the amount of money that people sometimes leave on the table when they sell their home as For Sale By Owner (FSBO). Most real estate agents sell fewer than seven homes a year. They really aren’t getting enough experience and practice selling homes to really know how to advise you on the 50-page contracts we have to deal with or to get you through the inspection process and make sure that the lender is properly doing their job, along with supplying the appraiser with the information they need to properly value a property.
If you want expert advice and solid legal protection, you wouldn’t go to sites like WebMd or LegalZoom, and it’s the same thing with real estate—to really know where you stand, you’d need to contact a professional who’s trained and experienced in these matters to give you their take.
If you have further questions or are in need of expert advice on real estate topics, give us a shout. Feel free to give us a call or send us an email. There’s no obligation or cost, and we’d love to help you figure out what the actual market value of your home is.
