If you’ve ever looked at your home’s Zestimate on Zillow, you might have been surprised by the number. While it’s easy to think it reflects your property’s actual market value, Zestimates often vary—sometimes significantly—from what your home would sell for. Here’s why.
What Exactly is a Zestimate?
Zillow’s Zestimate is an automated estimate of a property’s market value, calculated by a unique algorithm and updated regularly. It pulls from public data sources like:
Tax records
Recent nearby sales
Location and past price history
Despite using this information, Zestimate values can still miss the mark. Zillow reports an average error rate of 2.4% for homes currently on the market, but that figure jumps to nearly 7.8% for off-market properties.
Why Aren't Zestimates Always Accurate?
Several factors can cause Zestimates to miss the mark:
Outdated Data: Public records aren’t always current, and changes to a property might not appear in county databases for some time.
Unique Features and Renovations: Automated tools struggle to account for custom upgrades, recent renovations, or unique property characteristics.
Local Market Trends: Zestimates can’t capture the nuances of neighborhood trends, seasonal market shifts or buyer demand like a local expert can.
For example, if you’ve recently revamped your kitchen or landscaped the yard, those updates might not appear in the Zestimate.
For an Accurate Home Valuation, Consult a Local Real Estate Expert
Zestimates can be a helpful starting point, but they’re only part of the story. For an accurate picture of your home’s worth, it’s best to contact a real estate professional. Local agents are well-versed in neighborhood trends and comparable property sales. They bring in-depth knowledge and can give you an accurate, up-to-date valuation that accounts for your home’s unique features.
The Bottom Line
While Zestimates offer a convenient snapshot, they’re often based on incomplete data and automated estimates that can be off by thousands. Call us to receive a reliable assessment of your home’s market value. We are always here to help!
Comments