What You Need to Know About Zestimates

What You Need to Know About Zestimates

Zestimates are only estimates provided by Zillow.com and should not be used for pricing a home. Based on the city in which you live, Zestimates vary in accuracy. For example, Zestimates for Washington DC are more accurate with only a 5.4% median error compared to Dallas, TX which has a 10.5% median error. Keep in mind that Zestimates are computer-generated estimates based on available data. Some data may be incomplete, incorrect, or not available at all.  According to Zillow, a Zestimate should not be used at the basis of any specific real-estate related financial transaction. 

When looking to sell your home the best way to determine the estimated market value of a home is to talk with a local real estate professional who is familiar with the local market conditions. To determine the market value of a home, realtors examine the recent sales price of comparable homes, homes that didn’t sell, as well as the current competition. The condition and location of your home are also considered. A savvy realtor will be able to look at all these factors and determine an estimated selling price of your home.

It is not always best to go with the real estate professional who tells you what you want to hear and presents the highest listing price for your home. In fact, research reveals that an overpriced home actually stays on the market longer and sells at a much lower price that it would have if the home was priced correctly from the beginning.

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