Knowing the average inaccuracy of the Zestimates in your area can have a significant impact on your decision to trust or mistrust that number. People have become so accustomed to trusting online home valuations because they don't know where else to go.
According to a recent case, the company’s controversial “Zestimate” tool repeatedly undervalued a woman's home ultimately causing her home to sell much slower than expected. What's even worse? This is not the only instance where this type of inaccuracy has occurred.
Read more about what this woman had to say about "Zestimates" below:
Should obtain “the consent of the homeowner” before posting them online for everyone to see...
So why is this woman's case important? An inaccuracy of 10% may seem small, but that equates to a whopping $100,000. This isn't a small sum we are talking about here, it's a $100,000 difference in your largest financial asset. As you can see below, the averages across the country are spread out from 4% to as high as 7.3% in Tennessee. This information could be the deciding factor between selling your home or waiting.
If you head to Zillow's website and try to find their Zestimates page, you may find yourself looking long and hard. That's because Zillow doesn't make it easy to track down Zestimates on their website. Sure you can easily get a Zestimate by clicking the box right in the middle of the home screen, but what if you had a question or wanted to learn more? That is where it gets tricky.
When you visit Zillow.com , you can see below that you have to scroll ALL the way to the bottom to see the small, obscure tab named "Zestimates". When clicked, you will find a bunch of FAQs about Zestimates and hyperlocal information that you've probably never seen before.
In fact, one statistic that is overlooked by many homeowners is that the accuracy of the Zestimates in their specific area can often be drastically different than the national average.
This is a big red flag. Not only does this notify the public that numerous people are unhappy with how their Zestimate Home Value tool is performing, but also that they believe other teams can do a better job than they can.
At the moment, Zillow has announced that they are rewarding a team $1,000,000 for drastically improving the Zestimate.
As proud members of the Seattle community who actually live here, work here and sell homes here, we would be happy to send you a free report of exactly what your home is worth.
Technology is awesome, but when it comes to the value of your largest financial asset, the accuracy of your home's value matters.
See what major publications have to say about Zestimates