Are Zestimates Accurate? The Truth About Zillow’s Home Values!

When it comes to your home, you want to know that you are getting the most accurate estimate possible. You may have heard of Zestimates from Zillow- they are one of the most popular home value estimators on the internet.

Are Zestimates Accurate? Studies have shown that Zillow’s home values are within 20% of the actual value around 50% of the time. So while they aren’t perfect, they are a good starting point.

According to Zillow, it covers over 42,000 homes across the Chicagoland area and is only 75% of the time accurate within 5%.

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How does Zillow Determine Home Values?

Ever wonder how Zillow comes up with these numbers? They don’t just pull them out of thin air- there is a method to the madness. Zillow’s home values are determined by considering many different data points.

This includes public records, real estate transactions, and even user-submitted information. They then use special algorithms to come up with a final number.

Redfin and Zillow’s estimated values cover about 100 million homes nationwide.

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How Accurate are Zillow’s Home Values?

So now that we know how they come up with the numbers, how accurate are Zillow estimates? Studies have shown that Zillow’s home values are within 20% of the actual value around 50% of the time.

So while they aren’t perfect, they are a good starting point.

According to Zillow, it covers over 42,000 homes across the Chicagoland area and is only 75% of the time accurate within 5%. Other areas have different statistics, and your location will also vary the accuracy of the Zestimate.

For example, if your subdivision or town has a lot of activity and relatively similar homes throughout. Zestimate will be fairly accurate. However, the number will be less accurate if your home is unique or in an area with very few home sales.

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How to Get a More Accurate Home Value from Zillow

You can do a few things to help ensure your home’s value is as accurate as possible on Zillow. First, make sure your home facts are up-to-date and accurate. This includes the number of bedrooms and bathrooms, square footage, and any recent updates or renovations.

Your best, most accurate estimate is going to come not from a computer sitting in a warehouse but from a local real estate agent that will be able to walk your property and see what makes your homes stand apart and what a buyer in today’s market would be willing to pay for your home.

If you’re considering selling your home, the first step is to get an accurate estimate of your home’s value. Zillow’s Zestimate can be a good starting point, but remember that it is just an estimate.

Remember, Zillow, at one time, was buying homes from what the Zestimate algorithm was projecting; it led to Zillow buying over-valued properties and losing over $230 million. I guess computers can’t do everything yet.

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The four things that sell your Home for the highest price

Briefly, I want to tell you what will sell your home for the highest price; ultimately, the Zestimate is just an estimate of what your property could sell for. To make sure you get all the equity out of your investment that you deserve. Here are the four most essential things to remember when selling your property:

1. Presentation- Presentation is everything; it’s the first impression. This is a big one; you want the buyers to be able to envision themselves living there. If your home doesn’t have good curb appeal, it will sell for less than it could.
2. Pricing- You don’t want to overprice or underprice your home. Remember, you are not just selling to one person; you are selling to the market. The market will determine your home value, no matter how much you or your agent thinks it’s worth.
3. Marketing- Marketing is the overdrive of home sales. How more exposure your home has to every qualified, capable, and willing buyer, the more offers. Ultimately getting the best results.
4. Your Agent- How your agent negotiates for you, the fees they charge you, the marketing they do for you. It all has an impact on your home’s sales price.

Make sure you choose the right real estate agent for the job if you are in the Chicagoland area and looking for real estate services. Please reach out to me; you can call or text.

For a more accurate number, contact a local real estate agent. They or I can give you a more accurate estimate based on your home’s unique features and the current market conditions. You can set up a video conference with the link below to discuss your home and its estimated value.