It is so easy to look at third party sites to rely on your market and home information. What little people know though, what you are getting, is not always accurate information. Zillow can confuse you as a prospective buyer looking at a home you think can afford, just to find out that the price in Zestimate is also not accurate. The multiple listing service is the only 100% accurate platform where you can get updated and accurate information. Realtors are the only people that have access to such platforms. So if you want accurate and updated information when you are searching for your home, maybe it is time to get an agent instead of relying on third party information.
Listings can be inaccurate
The information posted on Zillow is not always accurately updated. Homes listed on Zillow are not confirmation that it is available to be sold. If Zillow does not receive information independently from that agent, then it is not updated at all. This includes price changes, under contract changes, and sold homes. Some homes on Zillow are also pre-foreclosures or auctions without directly making it easily known.
If a prospective buyer is looking online on third party sites, they should know the information posted is not promised to be accurate. A home you are interested in may not have an accurate list price, it could be active under contract, or worse… no longer available. It can all together be a waste of time. If you would like to look on these sites, I would send the home to your local Realtor and they can let you know the updated information for the property.
How precise is Zestimate
Zestimate is known as Zillows form of pricing a home. It is not an appraisal or a CMA (Comparative Market Analysis) from an experienced Realtor. It is based on an algorithm from data collected. That includes, sales prices of other homes, age, size, and features.
You will find that most Realtors are not very fond of Zestimate because, although it is very fast and at the touch of a button, the information may not be accurate and confuse a lot of buyers determining what they can afford.
The biggest thing that makes Zestimate inaccurate is, a real person is not actually seeing the home. There is no way to tell if the work that has been done is at its best and actually is adding value to the property. There is no proof of where they are pulling the comparables from. Typically you want a home as close as possible to compare to the home in question. There is no guarantee that the information pulled is doing that. Zestimate may not take into account the nearby features of the neighborhood like a park, junk yard, shopping centers, etc. It is also important to mention, if a home is listed as coming soon the Zestimate is even more inaccurate.
What you can rely on when pricing your home:
CMA:
A comparative market analysis is one of the best strategies out there to effectively price your home. The process of conducting a CMA is, you take into account similar, nearby properties, neighborhood, commercial areas, etc. Once you determine the factors you then compare the sold and on the market homes to the one you are trying to price out. You look at the neighborhood and businesses to determine if it adds value to the property itself. One of the biggest things you have to lean on is the market conditions. You cannot price a home the same way in a hot market as you would in a cold housing market.
Appraisal:
An appraisal is conducted by a licensed appraiser, in your current state, to determine how much the home is worth. Appraisals are most commonly used to determine the state and local taxes on the property. The appraised value and market value is not the same thing. The market is constantly changing, season from season, an appraisal is done on a home 1-2 years. I would absolutely recommend getting one if your offer has gotten accepted on a home. This will ensure that the home is priced accordingly and is worth the investment.
Zillow is not a Real Estate Agent
Zillow does not have access to the MLS like real estate agents. Real estate agents have full access to all the knowledge of the neighborhood and will tell you the updated information of the home. They work within knowing the market conditions and know accurate updates to relay based on your neighborhood or even the state.
What you get in a real estate agent is ten fold compared to what information you can get free from third party sites. Agents are knowledgeable in their local market and have the skills to properly price your home to what the market will allow. They can also let you know what to offer on the home you are interested in. Agents can advise you on what you should update on your home to add substantial value and appear more appealing to buyers. The local network an agent has can give you great recommendations of who you can use for any part of the transaction. The most important thing Zillow lacks, is it will never be a personal service from a Real Estate agent.
Zillow can be a safe space to scroll at the start or a home buying process or to learn about a property. It can be a helpful tool to browse with and get ideas and a basic understanding of the home. Although, if you are serious about buying a home or putting your home up for sale, it is then time to get an agent on your side.
Sources:
3 reasons why you shouldn't rely on Zillow. 3 Reasons Why You Shouldn't Rely on Zillow. (2022). Retrieved April 24, 2023, from https://bhhsselectstl.com/view-blog/3-reasons-why-you-shouldnt-rely-on-zillow#:~:text=Zillow%20can%20not%20do%20the,as%20will%20the%20asking%20price.
Clever Real Estate, C. R. E. (2022, August 25). How accurate is a zillow zestimate? 5 things to know. Clever Real Estate. Retrieved April 24, 2023, from https://listwithclever.com/real-estate-blog/how-accurate-is-a-zillow-zestimate-5-things-to-know/
