Can you trust online home valuation tools like Zillow’s Zestimate? Not according to this Illinois homeowner.
Looking to sell a home in Southern California?
Looking to buy a home in Southern California?
Websites like Zillow, Trulia, Redfin, and Realtor.com all have online price calculators where you can plug in your address (or the address of a home you want to buy) and get an estimated value of the home.
The interesting thing is that they all run off of algorithms.
These tools have long been argued as a hindrance for sellers and helpful for buyers. Sometimes, though, these home values are way off. In fact, some clients have seen property values off by as much as $100,000!
One woman in Illinois has actually taken matters into her own hands. She is suing Zillow for their inaccurate Zestimate of her property. She claims her property is worth $624,000, but the Zestimate for her home was only $550,000. The woman claims that the Zestimate has deterred buyers from making offers on her home due to the low Zestimate, and she is suing them because they are not an appraisal company—which is true.
Hire an appraiser or real estate agent for an accurate home value.
Zillow claims that, on average, their Zestimate values are only off by 5%. However, 5% can be a lot of money!
If you live in a condo with a lot of turnover or a home with similar properties in the area, your Zestimate might actually be within 1% or 2% of the market value. However, if your home hasn’t been sold in a long time, had a lot of upgrades done, or is in a neighborhood with a variety of property types, you won’t get that kind of accuracy from Zillow.
Obviously, if you want to have an accurate home value, you need to reach out to a real estate professional like myself.
If you want to learn more about Zillow and this lawsuit, check out this video, where Barbara Corcoran offers her view on the matter.
Remember, though, that Zillow is not an appraisal company or real estate professional. If you are curious about the accurate value of your home or if you have any other questions, give me a call or send me an email. I would be happy to help you!
Obviously, if you want to have an accurate home value, you need to reach out to a real estate professional like myself.
If you want to learn more about Zillow and this lawsuit, check out this video, where Barbara Corcoran offers her view on the matter.
Remember, though, that Zillow is not an appraisal company or real estate professional. If you are curious about the accurate value of your home or if you have any other questions, give me a call or send me an email. I would be happy to help you!
