Brainerd home sellers ask me all the time about how accurate Zestimates are. This is Zillow’s online home valuation tool and from what we’ve seen, you shouldn’t place too much emphasis on it.
By Zillow’s own admission, they are only accurate 7% of the time. This means they are off 93% of the time, which is a horrible success rate. The problem with their algorithm is that it’s written by a statistician, who doesn’t look at specific homes or change the valuation based on any other factor outside the algorithm.
If you have a $500,000 home and the Zestimate is off by 10%, you could be in trouble without even knowing it. If it’s 10% too low, you’re leaving a lot of money on the table. If it’s 10% too high, buyers will figure out you’re overpriced and likely avoid the home.
Zillow's Zestimate is a fun tool to use but as far as being accurate, it’s anything but. For a truly accurate home valuation for your property, give us a call or send us an email. We have a much better grip on the market and can look at your home’s unique features to determine your home’s actual value.
