If you’re suffering from a bad Zestimate, it’s because Zestimates aren’t very exact when it comes to determining home values. Here’s why.
If you’re a home seller and you’re suffering from a bad Zestimate, there’s a good reason why.
It starts with what a Zestimate is. A Zestimate is Zillow’s automated home valuation tool. It uses an algorithm to calculate a home’s value and pulls data from different sources. Because of this, Zestimates can be off by as much as 4.5%. On a $400,000 house, that’s almost $18,000 over or under the home’s actual value.
In 2016, Zillow’s own CEO Spencer Rascoff sold his Seattle home for a little over a million dollars. A few days later, that same home’s Zestimate was reported to be $1.75 million.
Studies show that when you price your home in accordance with its correct market value from the very beginning of the home sale process, you’ll generate a sale price of 5% to 7% more than if you price it too high and have to make a reduction.
How can you find out what your home is really worth? Give us a call. We’d be happy to walk through it, identify its features and benefits, and give you its true market value.
As always, if you have any other real estate needs, feel free to reach out to us as well. We look forward to talking to you soon!