22 Nov Zestimates – How good are they?
In Tucson Arizona, where we help clients buy and sell homes, Zillow is a popular tool for people who are looking for real estate advice.
Zillow publishes an accuracy rating for each major market they serve with Zestimates. Tucson does not have an accuracy rating on Zillow’s website but Phoenix does. In fact, Phoenix, Arizona has the second best Zestimate accuracy rating in the country, according to Zillow; 4 stars! Since Phoenix nearest Tucson, where we live and work, let’s take a look at how reliable Zillow can be while being optimistic of the results.
The valuation tool was able to guess the value within 5% of the sales price only 67.3% of the time. On the other hand, Zillow’s Zestimate for value was off by more than 20% about sixty two times out of a thousand. Would you rely on a Zestimate to help you determine if you are paying a fair price or if you are selling your home for market price?
Relying on a zestimate could cost you more than paying a Realtor to help you get the best price possible. Hire us to help you navigate the complicated transaction while saving you time, hassle and money!
To be fair, I do like the value trend graph that Zillow provides. I don’t pay attention to the actual value but I trust the slope of the graph and think it is helpful.
Even Zillow recommends using a Realtor:
“The Zestimate® home valuation is Zillow’s estimated market value, computed using a proprietary formula. It is not an appraisal. It is a starting point in determining a home’s value. The Zestimate is calculated from public and user-submitted data, taking into account special features, location, and market conditions. We encourage buyers, sellers, and homeowners to supplement Zillow’s information by doing other research such as:
- Getting a comparative market analysis (CMA) from a real estate agent
- Getting an appraisal from a professional appraiser
- Visiting the house (whenever possible)”
Louis Parrish, Broker
Excelsior Real Estate
MCNE, GRI, CLHMS, CDPE