This question comes up a lot both in conversations and at listing appointments. Everyone knows the name Zillow and a lot of people use Zillow to look at properties. Another feature of Zillow that people tend to look at is the Zillow Zestimate.
Can You Rely on the Zillow Zestimate?
So is that number that Zillow Denver is showing correct in terms of how much you could receive for your home?
Here is why I tell people they can’t trust the Zillow Zestimate.
- Zillow has not been inside your home. They haven’t done a walkthrough, they don’t know what upgrades and changes you have made around the home. They don’t know if you just spent thousands of dollars upgrading your landscaping or putting in an outdoor kitchen etc.
- Zillow does not know your neighborhood. They don’t know the value increase or decrease between your neighborhood and the neighborhood 2 blocks over. They don’t know that homes in your neighborhood back up to a golf course and the neighborhood a few blocks over back up to the interstate. They don’t know that a school district can make a big difference in your home price. There is just so much they don’t know about the area your home is in!
- Zillow is not looking at recently sold homes in your neighborhood to come up with their Zestimate. They are using an algorithm. There is no local knowledge, no looking at local stats, no local market knowledge. A home is worth what a buyer is willing to pay for it and local market statistics usually set this up in a buyers mind.
In the end, it is hard to price a home fairly and with knowledge, if you haven’t got belly to belly with that home. If you are looking for a good indication of what your home could be worth, contact me using the sidebar, I would be happy to do a quick walkthrough so that we can put together an accurate assessment.