Why Are They Hiding Important Information That Could Cost You Thousands?
Searching for the accuracy of a Zestimate is nearly impossible if you don't know where to look, and here's why
Knowing the average inaccuracy of the Zestimates in your area can greatly impact your decision on whether or not to trust 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, making her home sell slower than she would like. This is not the only case of this type of inaccuracy happening. Read more about what this woman had to say about "Zestimates" here:
Zillow faces lawsuit over ‘Zestimate’ tool that calculates a house’s worth
Should obtain “the consent of the homeowner” before posting them online for everyone to see... READ MORE
So why is this woman's case important? A number as small as 10% inaccuracy works out to be $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 amount 4% to as high as 7.3% in Tennessee. This information could be the deciding factor between selling your home or waiting.
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? This is where it gets tricky.
One statistic, overlooked by many homeowners, is that the accuracy of the Zestimates in their specific area can be drastically different than the national average.
On Zillow.com, at the bottom of the homepage is the small tab titled "Zestimates". Here you will find a bunch of FAQs about Zestimates and hyperlocal information that you've probably never seen before.
Zillow Prize will award $1M for improving Zestimate READ MORE
This is a big red flag. Not only does this tell the public that Zillow is unhappy with how their Zestimate Home Value tool performs, but they believe other teams can do a better job than they can.
Zillow has announced that they are rewarding a team with $1,000,000 to help improve its Zestimate tool.
I live on the Westside of Los Angeles and specialize in selling homes in this area. Let me know if you would like me to do an analysis that shows exactly what your home is worth.
Technology is incredible, but the accuracy of your home's value is a huge deal since it's probably your largest financial asset.