We’ve written several times before about the dangers of relying on Zillow’s “Zestimate®” to determine the value of one’s home. Here are two excellent columns that illuminate problems with Zillow. The first was a New York Times article titled “Why Zillow Addicts Can’t Look Away.” The article discusses homeowners who obsess over their Zillow Zestimate and how this obsession is especially a problem for sellers, and therefore listing agents, when Zestimates differ from market value. Even better is Ryan Lundquist’s recent blog titled “Is the Public Trusting Zillow Too Much?”. Ryan, a renowned Sacramento, CA-based appraiser and blogger, uses the recent history of a single property to make his point:
- On July 14th, influenced by Zillow’s bloated Zestimate of $380,000, the property listed over market value for $380,000.
- Shortly thereafter the price was reduced to $335,000 and the Zestimate dropped to $346,000, implying that Zillow correlates heavily to list price.
- The property then quickly sold for $350,000, but the Zestimate then fell to $328,000.
- A month after the sale, the Zestimate fell to $302,000.
Ryan went on to point out how the market had not dropped that much overall, how homeowners trust Zillow way too much, and how they need to trust real estate professionals instead.
A valuation of your home from a paid home appraiser or from a Realtor are always going to be much more accurate than a Zestimate since they use more analytics and professional experience. The Thomas & Kauffman Team is happy to provide you with a CMA (Comparative Market Analysis) of your home at no cost...just phone/text us at 512-730-1252 or info@AustinTxHomeSales.com. However, not everyone is comfortable going either of these routes to get an estimate of their home’s value. No problem...we also offer a free, automated & computer-generated CMA (using MLS sales) via our website at: What's My Home Worth? Simply put in your home’s address and a CMA will be sent to you within minutes.