The Zestimate® home value is Zillow’s estimated market value for an individual home and is calculated for about 100 million homes nationwide. It is a starting point in determining a home’s value and is not an official appraisal. The Zestimate is automatically computed daily based on millions of public and user-submitted data points.
Pros and Cons.
- Convenience – don’t need to call anyone
- Quick – don’t have to wait for it
- Free – so is CMA by professional real estate agent. Nobody will charge for that.
- It’s not correct! Currently, on average they are within 5% of the actual sale price only 41% of the time!
- Would you want to sell the biggest asset you own at the price that with 59% accuracy is not correct?
How is Zestimate determined? Based on average numbers. It looks at the homes in that area and calculates average price based on number of bedrooms, sq ft etc. But what if your home is not average? What if you spent 30K on kitchen remodeling? What is your house is located on cul de sac, vs busy street? What if you house is located in Troy but you have Birmingham schools and you are the only house on market in that area at the moment? Zillow doesn’t take into account any of that…
“Zestimate is a good starting point as well as a historical reference, but it should not be used for pricing a home”. (Zillow Web Site)
I hope by now I have convinced you that to determine your home value you should use a help of professional.