Why Zillow Home Values Should Not Be TrustedWhy Zillow Home Values Should Not Be Trusted
One of the most common questions I get is, “how accurate are Zillow home value estimates?”
The majority of the time, these Zillow home values a.k.a. “Zestimates” are NOT accurate. Zestimates are created by an automated system that cannot think for itself, or account for variations or unique characteristics that can alter the price.
One of the factors impacting the Zillow Zestimate is the property’s assessed value from tax records. Rarely does assessed home value have a correlation to market value. Assessed values are used by the county to collect taxes.
Another data point that Zillow uses is the most recent selling price of a property. The market is changing so quickly and a sale price that is years old is no way to estimate the current value of a home.
Zillow estimates the values of over 100 million homes across the country. It would be impossible for them to predict the value of each home accurately. Zillow does not enter properties but relies on their system instead. They have no idea that you spent $50,000 renovating your kitchen and bathrooms. Zillow also doesn’t know if you have a $20,000 structural crack in your foundation, or if your roof needs replacement. They also have not idea if your home is in a desirable area.
Zillow can be a useful tool, but it does not provide adequate accuracy on home prices to be used exclusively. Want to know the accurate market value of your home? Call Carrie Summers with Colorado Ranch & Home Realty 970-759-2540.