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What's Wrong with

Zillow Zestimates?

If you've wondered about the value of your house, I'm sure you've checked on Zillow for the Zestimate amount. Although that's not a bad place to start to get a rough estimate of the value of your property, it's just that. A rough estimate.

There are tons blog posts and articles about why Zestimates aren't an accurate value of a property. No computer algorithm can see a house. They can't get a feel for a house that buyers get when they walk through it. They have no emotional connection to properties. They can't know the local market to know what neighborhoods are selling like hotcakes or which areas are no longer popular. Even Zillow says Zestimates can be off by as much as 20%.

 

In the Tampa area for homes on the market, Zillow claims 84.7% of Zestimates are within 5% of sale price and 98.9% are within 20% of sale price. For off market homes, Zillow's figures show only 34.9% of Zestimates are within 5% of sales price and only 80.6% are within 20% of sales price (as of June 26, 2019).

What does that mean for you? If your listing price is 5% too low, that nearly covers the real estate commission. 20% low is just ridiculous! What about 5% high?

Pricing your property too high is no good, either. At just 5% over market value, the property won't appeal to 50% of buyers! You will get showings at this price, but no offers. At 20% over market value, only 20% of buyers will be interested, and you won't even get showings.

Most people just don't want to do a lot of negotiating. Buyers aren't comfortable making offers well below asking price, but they also aren't willing to overpay.

This is why it's so important to hire a Realtor with experience and pricing knowledge. Properly pricing your home on the market to get it sold fast for the most money is an art form. I suggest you consider limiting your listing agent options to agents who have special training in pricing properties. Hiring an agent who is a PSA is a good place to start.

What My Clients Say...

Barb is an amazing agent! She was able to point out things to improve in the house to get me top dollar. The house was only shown for a week and had offers. The best part was closing on the house earlier than the scheduled date.

 

It was a lot of stress off my shoulders knowing Barb made it easy to sell the house quickly. I would recommend her to family, friends, or acquaintances. If needed in the future, Barb will be the agent I contact. Thank you so much, Barb.

                                                                 -- Ed Jankowski from RateMyAgent