Feb 15, 2022
Estimated Reading Time: 3 minutes
Table of Contents
Zestimates are Zillow's estimate of market value for a home or property. They're intended for people to use as a starting point when determining a home's value. Zillow's stated goal is to make it easy and quick so that people can get the information they need without needing an appraisal.
How accurate is a Zestimate? It's not meant to be used in place of an appraisal or real estate professionals' opinion of value. A Zestimate could be used as a starting point when deciding on what the market value might be worth if you trust the data.
Zillow estimates are widely used by the general public. They do not take into account all of the different factors that can affect a home's value, but they can provide a good starting point for people to use when looking at homes or researching potential purchases.
A lot of people will ask how accurate Zillow's estimate is in relation to their own personal knowledge about what the market value should be. The answer depends on who you are asking, but it's important to remember that there may be different factors at play that Zillow doesn't take into account. For example, if you're buying a home in a hot market, the current value may be higher simply due to demand and lack of supply. Another example would be if the property in question has foundation issues, needs updating or repairs, then the value may be much lower.
Zillow estimates can be very inaccurate. There is no cookie-cutter reason for this, but rather a variety of reasons why data alone is insufficient to provide an accurate opinion of value on a specific home or property.
According to an article in Realty Times, the following are a few reasons that might lead to erroneous Zillow estimates.
1. Zillow uses user submitted Data – this can be prone to errors in user input
2. Zillow uses Third Party Sources for Tax Information – third-party data can contain inaccurate and erroneous entries.
3. Other things can throw off the Zestimate – if you have just remodeled your kitchen, added an outside deck, added central air, etc., it won’t be reflected in the Zillow home estimate.
Gassett, Bill. “ Zillow Estimates: Accurate or Inaccurate?” Realty Times, 21 Sept. 2017. Accessed 31 Jan. 2022.
Zillow and other online platforms can give you a rough idea of what your home might be worth. But to get a correct home valuation, you should speak to a real estate professional with local market knowledge and transactional experience in your real estate market.
We have been selling Kansas City Area homes and property for over 20 years, and we would be happy to help you determine the value of your home or property!
To get a free home valuation and to learn the advantages of selling your home with Mayo Auction & Realty, give us a call at 816.361.2600 or contact us by email.