Why Zillow's Home Values Are So Far Off

I wanted to talk a bit more about Zillow home estimates. Zillow is becoming one of my favorite sites not because I use it every day, but because I run into buyers and sellers who are using it every day.

People ask me daily about Zillow and the things they see on the website. I don't use it to price homes, but sometimes I'm actually forced to go to Zillow to look at their home values to see how off they are! There was an article recently published on Inman.com about the CEO of Zillow and how his home's estimate - or Zestimate, as they call it - was 40% off.

The method is not scientific.

This was not an isolated case, either. The values are off by a number of ranges, sometimes up to 70%. This should give a pretty clear picture of the information you're looking at with Zillow. It's a great website and I have nothing against it, but please do not use it to price your home. The method is not scientific, and there's no live person behind the pricing. For example, Zillow can't account for things like a home being right off a highway, which would normally take about 30% away from a home's value. Likewise, Zillow doesn't know of or factor in any upgrades or renovations done to your home.

If you want an accurate home valuation, call a local professional like myself. We can provide you with the most accurate info. In the meantime, if you have topics you're interested in, send me an email and we can discuss them. I'll see you in two weeks!