How does Zillow come up with its Zestimate values? Zillow uses an algorithm that pulls public information from our multiple listing system (MLS), tax records, and other online public records that will help it figure out the number of bedrooms, bathrooms, square footage, etc.
Usually when you use a computer, there will always be a level of inaccuracy. According to Zillow, they report inaccuracies from 6.4% all the way up to 20% in some areas.
This means if you’re looking at a $200,000 property, the Zillow estimate at 6% may be $12,000 over or under that number. If it’s 20%, your $200,000 home may show that it’s worth $160,000. That is a big difference.
A number of months ago, Zillow’s CEO bought a home for $1.6 million morethan what the Zestimate estimated as the value of the property. When he sold his home, he sold it for 40% less than the Zestimate value.
Another thing to consider is how exactly you come up with a real evaluation of your home’s value. The first thing you should do is reach out to a local Realtor.Make sure they have had a few transactions in the area and are familiar with the market. They should be able to give you pretty accurate information on the value of your property.
“Appraisers determine the value of your home through a physical inspection.”
The other option is to call an appraiser and have them take a look at your home. When they determine that value, they use a physical inspection. They come to the property and take in the home as a whole, verifying the square footage and any renovations you’ve completed, as well as looking at each unique feature of the home, from number of bedrooms to views out the window. With this information, they will give you a current value of your home.
If you have any thought abouts moving or you’re just curious about how much your home is worth, give us a call. We’d be happy to come by, take a look at your property, and give you an accurate estimate of how much your home is currently worth.
If you have any other real estate questions or you’re interested in buying or selling a home, give me a call. I’d be happy to help.