Your home is not worth what you see on Zillow and Realtor.com, and here’s why.
Hi, everybody, my name is Chris. I’m with HomesIn719.com, let’s learn a little bit more about Zestimates and other estimates you might find on other websites as far as the value of your current home and why they’re not right or accurate and sometimes can be off by a lot.
Let’s get started. So here’s an interesting little article I found on Forbes today just search it around on the internet for some information regarding Zestimate and the accuracy that they have. Zillow does rightfully post on their website what the accuracy of their Zestimates are. However, most people don’t ever go look at them and don’t do the math to figure out just how wrong they can be. This article is from June 30, 2019, right after Zillow updated the Zestimate formulas. John here put together a nice little article, and I’m going to scroll down here a little bit for you just so you can see it.
If I go down here, this little article section right here is the one I want you to look at. It says quite frankly in there that Zillow used to report that the median error was 6.7%. In the year 2018, it was 4.6%, and then in 2019, they revised it to be 7.7% for homes not listed for sale on the internet. And then if they were listed for sale, miraculously, Zillow is now 1.9% accurate. Well, the reason for that is the sales price that homes are listed for in Zillow are developed by realtors who actually have been to the house, gone through it, looked at the finishes, the fit, the upgrades, and compared that home to actual homes that have sold and not done just an average of similar homes in the area, which is what the Zestimate system does. It looks at similar square foot, similar four-bedroom, three-bath kind of stuff, and says, “On average, this home is similar to this home so the price should be about like this.”
But it has no idea if there’s been any upgrades done or worse if there’s a lot of repairs that are needed. So they don’t know. So, they frankly state that their error can be 7.7%. So in Colorado Springs, the median home price is $330,000, which means that if they’re off by 7.7%, that means their Zestimate is off by $25,000. That is a big number I would say to most people. I know it is to me. That doesn’t say that all houses are off by that much. But you surely wouldn’t want to list your home for sale for $25,000 more than it’s worth or $25,000 less than it’s worth because that would be a big error on your part, and it would cause you delays, and you would lose money either way. It would cost you more money because your home would take longer to sell or maybe not sell at all or you just flat lose the money because somebody comes in and snaps up that sale price under 25 grand less than what it’s actually worth, and the only person that loses is you.
So don’t do that. Don’t follow the Zestimate. It’s a fun number to look at and understand and pat yourself on the back for. But when it comes down to listing your home for sale, please let the professional, the realtor who’s going to look at and analyze every aspect of your home for value and then compare that to homes that have actually sold and determine about where the home should be priced at based on its current condition and upgrades and features.
Sounds right, doesn’t it? So with that thought in this article, it goes on to state that the homes that are listed for sale are miraculously 1.9% in error. Why would that be? Well, like I mentioned a minute ago, that’s because our realtor gave them the price, so the number’s going to be a lot closer. A professional has actually been in the house.
Hopefully, you found this video useful, and if you did, please take a look at my other videos on YouTube. Visit my website at HomesIn719.com as well as give me a call. Let’s discuss your house by number. My number is (719) 332-3628. Again, (719) 332-3628. You can call me, text me, WhatsApp me, Facebook message me, all that stuff works.
So please give me a call when you have a chance to talk about your home. Have a good day. Thanks for watching. Bye now.