The Problem With the Zestimate

Baltimore Real Estate Podcast with Seth and Alyce Dailey

You’ve likely heard of Zestimates, Zillow’s instant online tool for determining home value. The Zestimate feature is something our clients bring up all the time when discussing where to price their home. However, a majority of people don’t truly understand what a Zestimate is, or how it works. The Zestimate is actually an algorithm created by Zillow which uses gathered information to determine home values. But, is it accurate? This is the question on everyone’s mind. Most lawyers would typically answer that it all depends. There are certain factors that a Zestimate simply can’t take into account. One of the most notable examples of this is location. Zestimates tend to be most accurate in cookie cutter neighborhoods where all the homes tend to look the same. If your home is unique or in a rural area, though, your Zestimate is likely going to be way off. “A Zestimate simply can’t compete with a real, custom valuation.” Another important thing Zillow doesn’t take into account is the presence of any upgrades or additions in your home. As you know, these things can dramatically change a home’s value. Remodeled bathrooms, kitchens, or basements simply won’t be taken into consideration. Even though these things add a ton of value, Zillow simply doesn’t consider them. As a more effective alternative, something I recommend to my clients is to allow my team and I to perform a custom valuation of your home. This is a great tool we offer to all of our clients who are thinking of selling their home. A Zestimate simply can’t compete with a real, custom valuation. We will come out to your home and examine all of its features to determine its value in today’s market. The market is always changing, so getting a valuation with these current conditions in mind is key. If you’re interested in a custom valuation, have any other questions, or would like more information, feel free to give me a call or send me an email. look forward to hearing from you soon.