Monday, April 9, 2012

Ignore the Zestimate

Zillow provides a feature called the Zestimate that automatically generates a value estimate for a property based on a proprietary algorithm. Some buyers will see the Zestimate and consider it scripture when it comes to their opinion of a home's value. However, the Zestimate is an ersatz value estimation. First of all, without getting inside of the home to assess its condition, there is no way to have an accurate estimate. How does Zillow know whether you have a top-of-the-line kitchen and newly updated baths? Secondly, it isn't capable of tracking the neighborhood-centric factors that impact a home's value. I have seen a different Zestimate for each of four newly constructed attached townhouses that were absolutely identical. If you need an accurate estimate of your home's value, I can create a comparative marketing analysis for your home that will give you a much more accurate estimate of what the number really is.

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