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What Doesn’t Zillow Know About Home Values?

What Doesn’t Zillow Know About Home Values
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Like so many real estate portals on the internet, Zillow provides an estimate of a home’s value called a Zestimate. However, there are many things that Zillow does not or cannot take into account when it comes to the value of your home:

1. Market conditions. Since it operates based on an algorithm, Zillow’s Zestimate doesn’t truly take into account what’s going on in the marketplace. We’re currently in a very strong seller’s market, and what the closed escrows are actually closing for doesn’t reflect what’s happening in the market. Closed escrows reflect conditions anywhere from 45 to 70 days prior. Right now, you need to focus on active listings, pendings, and under-contracts, which are the numbers that will give you a better idea of what’s happening.

“It’s so important to have a real estate professional by your side.”

2. Tax records. Zillow’s algorithms are based on public information, which is often incorrect. In the tax records, your home may show up as a 3-bedroom, even if you have a 4-bedroom house. Easements and permanent additions also might not show up in the public record.

3. Renovations. Zillow doesn’t know whether the roof you have on your home is on its last leg, if you’ve just installed a brand-new HVAC system, if you’ve remodeled your kitchen, or if you have an original home from 1955 where nothing has been changed except the garbage disposal. If you’ve done a lot of upgrades to your home, there’s a good chance that Zillow isn’t going to give you a very accurate estimate.

This is why it’s so important to have a real estate professional by your side. If you want to know the true value of your home or have any other real estate questions, feel free to reach out to us.

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