In a nutshell - Zillow is good and a place to begin your journey but it stops there. It cannot and should not replace a good agent's pricing of your home.
The following statement comes directly from Zillow. "As a real estate professional one thing you are always doing is educating your clients on all things real estate. The Zestimate is no different. Armed with an understanding of how the Zestimate is calculated and the Zestimate Data Accuracy table, you can explain - and show Zillow's own accuracy numbers and talk about why the Zestimate is a good starting point as well as a historical reference, but it should not be used for pricing a home". Click the link to read the entire article.
http://www.zillow.com/zestimate/#pros
Let me repeat the last sentence..."It should not be used for pricing a home." Zillow uses a very complex algorithm from data such as bedrooms, baths, square footage, acreage, tax records, tax assessments, current sales, past sales and much more to calculate the zestimate. So you ask, with all this data why is it not accurate? Zillow admits their numbers are not accurate and gives themselves some grace in their calculations. Zillow says they are within 10% of the actual price in almost 70% of cases (http://www.zillow.com/zestimate/#faq-6). So, if we take a $250,000 home and use this model our home may only sell for $225,000. As a seller are you going to be upset? I gotta tell my listings sell between 95-98% of list price. When you use the local data, know the condition of the home, understand the market and the comps there are less surprises and often times more money. What if your home is listed for the Zestimate at $200K but the experience agents says it'll sell at $220,000 which would you rather have? Zillow does not, and really cannot, investigate all the intricacies of the local market, the condition of the home, repairs needed. the staging of the home, etc. Only an experienced Realtor can do this and it takes a lot of time to come up with a good CMA (Comparative Market Analysis). If you list too high you don't get any buyers, if you list too low you risk your clients losing money, if you don't pay attention to the comps (which I do by looking at the last 90-180 days of sales of similar typed homes that are geographically close to yours), you mis-price altogether and not do a great job representing your sellers. As a buyer's agent I also make sure I check comps so my buyer does not overpay. You want someone that is looking out for your best interests.
| I am always looking out for my clients! |
I find myself having this conversation too frequently:
Me: So, how much do you think we should list your home for?
Seller: I think we should list for $225,000.
Me: Why
Seller: Because 2 of my neighbors just sold for $185,000 and my home is much nicer.
Me: Well, that's not exactly how it works so let's take a look at those homes and talk about how to price a home.
Hire a good agent and listen to what they have to say. I encourage sellers and buyers to interview multiple agents (and include me because I know I am confident and very good at what I do) because trust me not all agents are good. Ask them about their experiences, problems they have faced, sales numbers, days on market, etc. If they can't answer these don't hire them. Also, when I present my listing presentation to you please don't blow me off just because I say something you don't like to hear. Would you rather have a truthful agent or one that tells you what you want to hear and your house sits on the market for months? I think we both know the answer to that.
Call me, Jason Gregg, and I'd be happy to come speak to you about selling your home and/or helping you buy a home. Heck, we'll even take a look at the Zestimate.
-Jason
Who do you know looking to buy or sell real estate. Please call me at 843.696.8627 or email me at Jason.Gregg@kw.com
