Can You Really Trust Zestimates? Expert Explains
Can you really trust online home valuation tools like Zestimates?
Most people have heard of Zillow, and if you haven't, it's a popular real estate website that millions of Americans and even individuals worldwide visit to search for real estate listings. Research has shown that people are now more likely to type 'Zillow' into their search engines than 'real estate,' demonstrating its popularity among consumers.
Zillow provides a valuable tool within its platform known as the 'Zestimate.' This online valuation tool has become a relied-upon resource for the American public, often considered an online appraisal.
However, there is a significant issue with the Zestimate's accuracy, and I'm going to focus on Las Vegas as an example. But you can access similar data for your local market on Zillow. In Las Vegas, if a property is already listed for sale or has been on the market recently, Zillow claims to estimate within a 5% range on each side of the ultimate sales price. So, if the median price is $450,000, that's a variance of approximately $26,000 to $27,000 on either side. Zillow suggests an 85% confidence level in getting the property priced within about $50,000 to $60,000 of its actual market value. When selling your home, leaving that much money on the table can be a significant concern.
"We have a Zestimate-like tool that we believe is more accurate."
There are solutions to this issue: We offer two tools to address it. One is our 'Pinpoint Laser Specific Equity Analysis,' which is tailored to your property. Just provide your property address, and we will conduct a thorough hand analysis to send you an equity report. This analysis will help you determine your net worth and assess your real estate's financial standing, considering it's likely your most substantial asset.
Additionally, we have a Zestimate-like tool that we believe is more accurate. We can provide this tool to you and track the property's estimated value closely, ensuring it aligns with your expectations. This way, you can navigate the real estate market with greater confidence and clarity.
Many individuals rely heavily on Zillow's estimates, but we offer solutions to ensure your financial interests are protected. Feel free to call or email; we're here to assist you.