How reliable are Zillow’s estimates? Not very, and here’s why.
Many homebuyers, sellers, and owners turn to Zillow to learn about home values. Unfortunately, this real estate website’s estimations are often off by a big margin.
In our experience, Zillow estimates are at least 5% to 15% off, and in some extreme cases, they’re 25% to 35% off of the home’s true value.
Zillow uses a basic algorithm that is supposed to use comparable property sales to come up with a value. However, finding the true value isn’t that simple.
“There’s simply no way for Zillow to account for everything that gives a property its value.”
While it’s a decent tool for finding a rough estimate, Zillow is simply too inaccurate to believe entirely. The CEO of Zillow himself proved this—his estimate said his home was worth $1.75 million, but it sold for just under $1.1 million. The estimate was nearly 40% off.
What’s the best way to determine your home’s value? Speak to a licensed real estate agent to receive a free equity evaluation. Zillow’s great for finding potential homes, but an agent will research comparable sales, assess the property, and analyze market data in order to price your home correctly. There’s simply no way for Zillow to account for everything that gives a property its value.
If you or someone you know is thinking about buying or selling a home, feel free to reach out to us anytime. We’d be more than happy to find out what your home is truly worth, and we look forward to hearing from you soon.