House Values in Arizona…What You Need to Know about Zillow’s Zestimate?
Zillow remains the most popular and visited real estate website in the United States. From the commercials to the mobile app, many consumers are drawn in and use this valuable resource to not only search for houses for sale, but to see what their home are worth too. Homeowners who plan to seller their home in Arizona, frequently make a comment that “Zillow says my home is worth $xxx,xxx”. On the other hand, when home buyers planning to make offer on a property, they often compare the list price to the Zestimate found on Zillow. They will say, “Zillow says the house I’m interested in is worth $xxx,xxx”.
Today’s home buyers and sellers frequently rely on Zillow to find homes for sale, compare houses for sale, obtain the details on the houses for sale and more. Like many things found on the internet, there are times that what “Zillow says” is inaccurate.
What is Zestimate?
According to Zillow, 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. The Zestimate is automatically computed daily based on millions of public and user-submitted data points.
So, Zillow already made it clear that: Zestimate is determined by an automated computer program, there is no actual person who researched the house and it is not an appraisal. It is just a starting point in determining a home’s value.
How accurate is Zillow’s Zestimate?
According to Data Coverage and Zestimate® Accuracy, in Maricopa County, about 85% of the house value provided by Zestimate are within 10% range. So, for a $250,000 house, the range can be somewhere from $225,000 to $275,000.
Here’s a great example: The CEO of Zillow (yes, the CEO) sold his home. The Zestimate said it was worth $1.75 million. The home sold for $1.05 million, much less than the Zestimate. Actually it sold for 40% LESS than the Zestimate. Ouch! Here’s the article: Zillow CEO Spencer Rascoff Sold Home For Much Less Than Zestimate.
How is Home Values Determined?
House value are determined by professional licensed appraiser. A real estate appraiser’s only job is to give an unbiased OPINION of value of the subject property. The appraiser will determine the house value based on “comparables”. A comparable is a similar home that has recently sold in the area. Things such as square footage, number of bathrooms, garage space, pool, fireplaces, and upgrades are taken into consideration. Your Realtor will use similar methods to determine listing price when selling your home.
Final Thought
If you just want to guestimate how much your home in worth, Zillow’s Zestimate will helps. As Zillow put it: “It is a starting point in determining a home’s value.” If you are planning to sell your home, you will need to have a discussion with a local Realtor. Not only do realtors maintain your best interests, they look out for you personally. A real estate agent is the best resource for pricing a home correctly.
How can a real estate agent help?
We would love a chance to show you how we can help sell your home and reach more potential buyers! Call Swee Ng today at 480-721-6253 or reach out to us here!
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