How accurate are Zillow Zestimates?
When you’re trying to determine your home value, it’s easy to check Zillow. From our experience, that may not be the best place to find the value since the Zestimates are not always accurate.
As an example, we own a rental house in Athens. The Zestimate of this home is $107,351. About 3 months ago, we had an appraisal done for refinancing and it appraised for $124,000. That doesn’t necessarily mean that the house would sell for $124,000 but I would put a lot more faith in the appraisal than the Zillow estimate. Before we started the process for refinancing, I looked at comps and figured it would appraise for $120,000-$125,000.
Zestimates tend to change to match the list price when a home is listed for sale. Maybe not to the exact value, but if you check the Zestimate on listed homes, many are just below and some are way above the list price. It’s common to see the Zestimate adjust by $50,000 or more, after a home is listed for sale. Recently, we noticed the value of a condo Zestimate go from $70,000 to $330,000 because someone purchased several units in one transaction, which then gave an inaccurate comp.
We have another option for getting home values. It’s a service through the National Association of Realtors and seems to be more accurate. The rental house has a value of $125,280 on the NAR site. If you haven’t received this report for your home, click on the link and fill out the information. The report will be sent to you within 24 hours… usually right away.
What is the true value of my home?
If you want to get a more complete analysis, we will set an appointment to meet with you and see your home. There are many factors to consider when placing a value on a property. Checking comparable properties is one part, but the condition, features, updates and age of appliances, HVAC and roof can also play an important part. There is no obligation for this visit and it may help you plan for a future move up or downsizing.