Because Zillow estimates the price of a home, it’s often used as a tool by both homebuyers and home sellers. However, users may not understand how the website’s Zestimate is calculated and find faith in a number that could be, in reality, too high or too low.
This is how it’s calculated:
Zillow computes a price from an algorithm, which is based predominantly on past tax records. Because these records aren’t current, it does not show an accurate representation of a home’s current price.
A Zestimate does not have all of the information, such as data from our MLS or prices from homes sold by builders. Without these, the Zestimate is not a true reflection of property value.
To find an accurate number, it’s a good idea to call a real estate agent. We’re able to pull numbers from tax rolls, builders, our MLS, and nearby homes that have sold. An agent can also compare the condition of a sold home to yours—something that Zillow is unable to do.
There is no way for Zillow to be truly accurate. The website even tells you their prices are at least 5% to 6% off.
I can help you find out how much your home, or any property you’re interested in, is worth. Feel free to contact me if you have any questions or would like some information. I look forward to hearing from you.