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Zillow’s Zestimate: Even the CEO Doesn’t Rely on Them

Posted By Chris Majernik @ Jun 15th 2017 11:27am In: Selling

Zillow’s Zestimate: Even the CEO Doesn’t Rely on Them

One issue we encounter on a daily basis revolves around Zillow’s Zestimate and other online home valuation tools. These mega real estate search tools and online “Value Your Home” calls to action have become household names and are influencing buyers and sellers into believing these prices are legitimate real estate appraisals.

Unfortunately, that’s just not the case.

According to Zillow, a Zestimate is calculated via a computerized algorithm based on millions of public and user submitted data points and “Our data sources may be incomplete or incorrect; we have not physically inspected a specific home. Remember, the Zestimate is a starting point and does not consider all the market intricacies that can determine the actual price a house will sell for.”  

With over 90% of home buyers and sellers starting their search online, it’s understandable to believe Zestimates are reliable, but think about this: How can accurate estimates be provided on a home when no one from Zillow is doing the actual groundwork?

Even the CEO encourages everyone to use a real estate agent, ”We call it a Zestimate and not a zeppraisal and not a zeprice. It’s meant to be a starting point,” Rascoff told Market Watch. “To determine a more accurate opinion of a home’s value you should hire a real-estate agent. 

When the CEO doesn’t rely on zestimates, why do customers and clients focus so much on these numbers when it’s time to buy or sell a property?

Zillow Zestimate’s are literally costing people tens of thousands of dollars per listing because these numbers are so inaccurate the majority of the time.  

In South Carolina, Zillow is absolutely missing the mark. According to their own Data Coverage and Zestimate Accuracy Table, there are 1.9 million homes on Zillow in SC. Out of those listings, their zestimates are within 20% of actual sales price 85% of the time. To put that into perspective, with a $300,000 home, their zestimate can be off by a whopping $60,000!!!  

At Gatehouse Realty our homes are sold within 95-100+% of list price. If we were to run our estimations in the same way as these home valuation tools and sell homes with such a high margin of error, we would be out of a job!  

Here’s why you should trust Gatehouse Realty rather than rely on Zillow and other home valuation tools and calculators on other real estate websites:

Our motto is to be service providers rather than sales people. When you visit our website and click on the, “What Is My Home Worth?” button, you’ll see that you’re asked to fill out a form. You will never receive an automatic price on your property from us because we refuse to spit out a number you want to see just to get your listing.

The Charleston area real estate market is ever changing and pricing your home correctly is key. When Gatehouse Realty is asked to value a property, a highly experienced, licensed and local agent will personally search records, analyze recent sales, include upgrades, and study local market conditions to accurately run a comparative market analysis (CMA) focusing on the right price to meet your goals.

Want an accurate analysis of what your home is worth? Request a CMA and let’s help unlock your future.

What’s behind the gate? Follow us on Facebook, YouTube, Twitter, & Instagram to see what we’re up to!

 

 

 

 

 

 

 



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