The Danger of the Zestimate
Today’s consumer is more connected than ever. When you’re ready to buy a car, do you go straight to the dealership and ask the sales person to show you the 4 door sedan of your dreams? Not likely. Much more likely is you don’t walk into dealership until you’ve done a few hour’s research on your laptop while Law and Order SVU plays in the back ground. You’ll know what every 4 door sedan in the area going for and you’ll be armed to the teeth with knowledge of the deals at every dealership on your side of the state line; or both sides even.
Selling your home is no different. When contemplating selling, the first thing many home owners do is peruse the web. And often one of the sites they stumble on is Zillow with it’s famous Zestimate. As Zillow put’s it, “The Zestimate® home valuation is Zillow's estimated market value, computed using a proprietary formula. It is not an appraisal. It is a starting point in determining a home's value.” But many agents find that their sellers are set on what the Zestimate has approximated as their home value. Until now.
Zillow CEO Spencer Rascoff has just shown home sellers the dangers and innacuracies of the Zestimate. On February 29th, Rascoff sold a Seattle home for $1.05 million, 40 percent less than the Zestimate of $1.75 million shown on its property page a day later. That is obviously a huge difference and shows just how easy it could be to price yourself right out of finding a buyer.
Enter a licensed Realtor who will look at your home and compare it only to homes that are actually equivalent. No logarithms, no mass compiling data, as your agent, I will know precisely how to position your home with a sale price that will bring buyers in and entice them to write offers. If you’re wondering if now is the time to sell (and it may very well be in this incredible seller’s market), call me and we’ll walk through exactly what your home is worth and if it’s a good time to be moving on.