Zillow is an American online real estate marketplace company that was founded in 2006. Zillow’s basic concept is good however it is often has inaccurate. The listings have incorrect information and outdated information. This is the main issue realtors have with Zillow. Buyers are tremendously impacted by this. You have your heart set on a beautiful house listed on Zillow, only to find out that it is already under agreement and should have been listed as such. Or you miss out on a home that may have been perfect for you but Zillow did not have it listed in a timely fashion and it is now off the market. If you are simply. Looking around to get an idea of the market or a particular area, Zillow can do the job. However, nothing takes the place of a real person looking out for your best interests.
Have you ever received an email from Zillow saying how much your home is worth? This is a marketing tool that Zillow uses to entice you to list your home with them. This is a Zestimate. Zestimates, as Zillow calls them, are an estimate of what your home is worth. However, beware, the Zestimate is only as accurate as the data used. The amount of data depends on the home’s location. Some areas have more detailed information available, such as square footage, number of bedrooms and baths, building materials, upgrades, etc. Other areas lack this Infomation. In short, there are many opportunities for mistakes. I refer to a Zestimate as a blind guesstimate. No one has come to your home in person. They have not seen the upgraded kitchen or bath or the beautiful landscaping.
Appraisers do not look at the Zillow value of your home because they understand that Zillows home values are not accurate. Remember, Zillow never claims to be 100% accurate. And they are not, they are simply an automated home valuation tool. It is not meant to take the place of an appraisal or CMA (comparative market analysis). Banks and lenders also do not use Zestimates to estimate a property’s value for a mortgage.
To sum it up, a Zestimate does have a value. It can give you an approximate value for your home. If you are selling your home and want a more accurate estimate, call in a reputable Realtor to do a CMA. This should give you a realistic value to set a sale price and get your home on the market. When your home sells, you should be on solid ground for when the bank or lender sends an appraiser for the mortgage.