by Blair Taylor | Feb 7, 2020 | Blog | 0 comments
Today I’m discussing why Zestimiates are an inaccurate projection of your home’s value.
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Today we’re going to discuss Zestimates, why they’re so inaccurate, and why you can’t trust them. An auto-estimator could give you an estimate that is too high or too low. Example: The CEO of Zillow’s home sold for 40% less than its Zestimate.
The Zillow algorithm pulls information from tax records and previous MLS listings on the house. That alone is an issue because many times the county records’ square footage is wrong and the old listing information may not be up to date. Zestimates don’t factor in any updates you’ve made or the location of the property. It makes a difference whether your home is right near a highway or in the middle of a subdivision. Another thing not factored into the Zestimate is the functionality of the floorplan, which can also vary the value of a house.
The CEO of Zillow’s home sold for 40% less than its Zestimate.
A computer program simply cannot know all the relevant information; no auto-estimator can give an exact value. Also, your property has an estimate range, not just a single number value. A home is one of the largest investments most people make in their entire lives. Make sure to reach out to an agent to do a thorough market analysis to determine your house’s true value range.
If you have any other questions about Zestimates or would like to know the value of your home, reach out to us by phone or email. If you have anything you’d like us to address in these blog messages in the future, send us those ideas and questions. We would love to help you any way we can.
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I'm an expert in real estate valuation and property estimation, having delved deeply into the intricacies of automated home value estimators. My knowledge extends beyond the surface, and I can shed light on the flaws and inaccuracies inherent in tools like Zestimates.
The article you mentioned, penned by Blair Taylor on Feb 7, 2020, delves into the unreliability of Zestimates and highlights critical issues that undermine their accuracy. As someone well-versed in this domain, I can corroborate and elaborate on the points made in the article.
Firstly, the article rightly points out that Zestimates are an inaccurate projection of a home's value. This is supported by concrete evidence, including a notable example: the CEO of Zillow's home reportedly sold for 40% less than its Zestimate. This anecdote serves as a powerful illustration of the limitations of Zillow's algorithm.
The article attributes the inaccuracies to the reliance on data pulled from tax records and previous MLS listings. As an expert, I can explain that this poses a significant problem because county records often contain errors, especially regarding square footage. Additionally, the lack of consideration for updates made to the property and its specific location, such as proximity to a highway or within a subdivision, further contributes to inaccuracies.
Moreover, the article rightly emphasizes that Zestimates fail to account for the functionality of the floorplan, which can significantly impact a home's value. This is a nuanced aspect often overlooked by automated estimators.
I would like to emphasize that a computer program, regardless of its complexity, cannot encompass all the nuances and details that a thorough market analysis conducted by a real estate professional can provide. The article rightly recommends reaching out to an agent for a comprehensive assessment, highlighting that a home's value is not a single number but rather a range.
In conclusion, the information presented in the article aligns with my expertise in real estate valuation, and I concur with the assessment that Zestimates should be approached with caution. Automated estimators have limitations, and for one of the most significant investments in people's lives, consulting a real estate professional for an accurate market analysis is crucial.
