Do you use Zillow for home-related information? A popular part of Zillow’s database is the Zestimate home values. Have you used ‘Zestimate’ home values to value your home? Well, you may want to think twice about using Zestimate to value your home…
Zillow CEO Spencer Rascoff has shined a bit of light on how Zestimates can miss by a mile. How? By selling a property for less than its Zestimate – wayyyy less.
On February 29, Rascoff sold a Seattle home for $1.05 million, 40 percent LESS than the Zestimate of $1.75 million shown on its property page a day later.
Why the HUGE Gap?
In Rascoff’s case, the Zestimate was way over priced. The estimated value can be overshot or undershot, but why is there such a big gap? Well for starters, Zestimate cannot take into account “non-quantifiable facts,” such as layout design or lighting. Rather, it calculates factors, such as as market condition, location, etc. It may not know that you updated your bathrooms last year and have granite counter tops in your recently renovated kitchen.
Now don’t get me wrong. Zillow’s website states that the Zestimate is only a starting point and is to serve as a conversation starter for the agent and consumer. However, the point of this blog is to inform consumers that they cannot take the Zestimate as “gospel.”If either a buyer or seller does not budge off the Zillow’s estimated value, in most cases, it will kill the deal.
I am not saying that you shouldn’t use Zillow to value your home. As mentioned above, it is a great starting point. But if you want to receive the true value of your home, talk to an agent and get a comparative market analysis (CMA) on your home. It will save a lot of headaches – both for you and the agent!
For the full story and more information on the Spencer Rascoff story, visit here!
Are you thinking of buying or selling a home, or have a friend or family member who is? Contact The Pivec Group today by calling 443-692-8800 or visiting our website! We look forward to hearing from you and helping you find YOUR dream home!