How Accurate are Zestimates on Zillow?
Do you use Zillow to check out the value of homes? A lot of people do. Zillow’s “Zestimates” frequently come up in conversations that I have with buyers and sellers. I’ve always said that Zestimates are a great starting point when determining a home’s value, but it is very important to have a Realtor prepare a Comparable Market Analysis (CMA) to better determine the market value of a home.
Here’s a great article about Zillow and how Zestimates can be way off when determining the market value of a house:
There are two important things to remember when determining the value of a home. First, a home is only worth what someone will pay for it. Second, unless the buyer is paying cash, a buyer’s lender will only lend based on an appraisers market value. Appraisers do not look at Zestimates, they look at the data provided by the MLS and tax records. They make adjustments for various items compared to comparable sold properties and properties currently on the market. And so do Realtors. A Realtor looks at the same items an appraiser does to help determine market value, however, Zestimates do not take into account most things an appraiser looks at.
If you would like a free CMA of a property don’t hesitate to contact me at 480-634-5000.