In searching for a home, Zillow is one of the most popular sites and apps that people use. With it being so popular, the question follows if its pricing on properties are actually accurate and should be considered seriously.

The article “Are Zillow Home Value Estimates Accurate?” created by Bill Gassett provides some eye opening details about how Zillow gets its numbers in providing price estimates of properties. He gives some truthful insight by showing us that while Zillow’s estimate can be a good starting ground in pricing a property correctly, it should not be your only source to rely on.
How does Zillow create its home value estimates?
Assessed value ≠ Market value
Zillow uses information from public records and information entered by users. It can figure out how much the home previously sold for and information on the other surrounding homes. They use this plus information by homeowners to create their assessed values on homes. While they provide a useful way to see pricing, Zillow does not take into consideration the type of market a home is in at the time.
Intelligent Real Estate agents don’t look at the assessed value of a home, but they rather look at market value. This type of valuation is more accurate, going with the current conditions. There are so many variables that aren’t considered in Zillow’s pricing, such as renovations and other details that could increase the home’s value.
Though Zillow proves to fall short in estimating home values accurately, it does provide ample amount of information that is valuable for a buyer/seller. It is an excellent source of data that can be extremely helpful in the buying and selling process.
Zillow’s estimates can be a great starting point to get an idea in a home value; however, it should not be used as an exclusive source in finding your home value.

Want more details? Click the link for Bill Gassett’s article

Posted: 6-20-2018 12:17PM EDT