Just how accurate are Zillow’s home value estimates, or Zestimates?
You first have to understand where Zillow gets its data for the Zestimates from. Public tax records show things like the number of bedrooms and bathrooms and the square footage. If you own a home, you can also log into Zillow and manually update information about it. You can enter if you have granite countertops or new hardwood floors and they’ll increase your Zestimate.
Zillow combines this into a general value of your home in your neighborhood. However, people don’t always go on Zillow and enter what they’ve done to their home. If not, Zillow has no way of knowing if you added 500 square feet, for example. They can’t keep up with the exact data. They can’t account for your neighbor’s home, either.
The Zestimate can be a good general starting point to get an idea of what your home is worth, but it’s not an appraisal or an exact price. You don’t want to use it to price your house.
So how far off are they really? The median error is 5%, so half of the homes on Zillow will be under 5% off the sales price. The other half are off by more than 5%. It may not seem like much, but for a $350,000 house, the sales price could be off by $17,500.
To get a true market value of your home, you need to consult a real estate professional who does it every day. We look at all the specific data, not just general tax records. We consider the age, size, condition, updates, materials, and other similar homes in the area, to name a few details. The smaller details are how we keep from overpricing or underpricing your home.
If you’d like to know what your home is worth or you’re thinking about buying or selling a home the Nashville market, don’t hesitate to give me a call or send me an email. I’d be glad to help.