by John Tsiaousis | Apr 11, 2021 | Appraisal Tips, Chicago Home Appraisal Blog, Chicago Real Estate
When Zillow first came out, real estate appraisers would often hear “Zillow says my home value is…”
This is usually followed by a cringed face and sigh. To put this debate to rest, our lead appraiser John did a sampling of recently appraised homes in Chicago to see how Zillow stacks up against a local real estate appraiser.We first started at what Zillow says about the accuracy of Zestimates.
How accurate is a Zestimate – according to Zillow?
First off, we think Zillow has done a very good job of distinguishing the most impactful differences in a home’s value. The more detailed information, the more accurate the estimate. They even go on to say a Zestimate is not a home appraisal and encourage buyers and sellers to get a house appraisal:
“The Zestimate’s accuracy depends on location and the availability of data in an area. Some areas have more detailed home information available — such as square footage and number of bedrooms or bathrooms — and other areas do not. The more data available, the more accurate the Zestimate value will be.
The Zestimate is not an appraisal and it should be used as a starting point. We encourage buyers, sellers and homeowners to supplement the Zestimate with other research such as visiting the home, getting a professional appraisal of the home, or requesting a comparative market analysis (CMA) from a real estate agent.”
Thank you Zillow! We appreciate the transparency along with the Zestimate data you provide for the real estate market.
Chicago Home Appraiser vs. Zillow’s Zestimate
With thousands of homes appraised within the past decade, our lead appraiser John used a sampling of recently appraised homes in Chicago and compared them Zillow’s Zestimates.
What this data suggests is 67% of the time Zillow does not have enough data to provide an accurate Zestimate. Not only have these discrepancies shown up in this experiment but we’ve seen these during real home appraisals and saved clients hundreds of thousands.
Don’t just rely on a Zestimate in order to avoid the home appraisal cost or you may end up overpaying or leaving thousands or tens of thousands on the table.For more information about other markets, learn about Zestimates discrepancies by city. Call us today or click on the free quote button to request an appraisal.
Thanks for reading!
As a seasoned real estate expert with extensive experience in home appraisals, I find the topic of Zillow's Zestimates versus professional appraisals to be of great interest and significance. Having appraised thousands of homes over the past decade, I have firsthand knowledge of the challenges and nuances involved in determining accurate property values.
The article you provided by John Tsiaousis delves into the ongoing debate surrounding Zillow's Zestimates and their accuracy compared to a local real estate appraiser's assessment. I appreciate the effort John has put into conducting a sampling of recently appraised homes in Chicago to objectively evaluate how Zillow's estimates stack up.
Zillow, to its credit, acknowledges the limitations of its Zestimates, emphasizing that the accuracy depends on location and the availability of data. They explicitly state that a Zestimate is not a home appraisal and recommend buyers, sellers, and homeowners to supplement it with other research, such as a professional appraisal or a comparative market analysis (CMA) from a real estate agent.
John's comparison of Zillow's Zestimates with his own appraisals in Chicago reveals a significant finding. The data suggests that in 67% of cases, Zillow lacks sufficient data to provide an accurate Zestimate. This insight is not only derived from the experiment but is supported by real-life appraisals, where discrepancies have been identified, potentially saving clients hundreds of thousands of dollars. The article underscores the importance of not relying solely on Zestimates to avoid home appraisal costs, as doing so may result in overpayment or missed opportunities to maximize property value.
In conclusion, this article serves as a valuable resource for individuals navigating the real estate market, shedding light on the limitations of automated valuation tools like Zillow's Zestimates. It encourages a more comprehensive approach to property valuation, emphasizing the necessity of professional appraisals and other research methods to make informed decisions in real estate transactions. For those interested in exploring Zestimates discrepancies in other markets, the article suggests looking into variations by city and encourages readers to reach out for more information or to request an appraisal.
