This question has become a very common concern and unfortunately a trending topic among some of my clients as well as been brought up at office meetings by other agents. Question to you: Are you guilty of checking your homes value frequently, quarterly, or a few months after purchasing your new home? I think it’s fair to say, most people are guilty and many FREAK out when they see that their homes value may have depreciated since their purchase. I am here to tell you, don’t read into the ‘zestimate’ or believe what Zillow says your home is worth. This is why my profession exists. We, realtors, are real estate professionals that have eyes, ears, nose and a mouth… AKA we are human and are not a computer! What Zillow can’t do, that we, real estate agents can, is tour inside homes and check the condition of the properties, stand outside the front and back yards, drive around the neighborhood, are familiar with the schools that a home feeds into and how sought after that school may be, AND above all, figure out the marketability of a property. To help support my argument, LA Times recently wrote an article titled “Inaccurate Zillow ‘Zestimates’ a Source of Conflict Over Home Prices” that discusses more in depth on the topic. Below are two quotes I found to be most relevant that I extracted directly from the article:
- “Zillow CEO Spencer Rascoff, says Zestimates are “a good starting point” but that nationwide Zestimates have a “median error rate” of about 8%.”
- “In San Francisco it’s 11.6%. With a median home value of $1,000,800 in San Francisco, according to Zillow estimates as of December, a median error rate at this level translates into a price disparity of $116,093.”
Now that you’ve read the above quotes, please don’t take your ‘zestimate’ to heart. If you are curious of your homes value, you may want to contact your real estate professional for the best, most accurate, estimate.
Looking to buy or sell real estate on the Peninsula? Please contact me and I will be happy to follow up with you!
Want to read the rest of the article? Click the link below: http://www.latimes.com/business/realestate/la-fi-harney-20150208-story.html