Like most people in today’s age, you’ve probably used technology at some point to look up the value of your home or one you’re interested in buying. More than likely you’ve also heard of or used the website Zillow and its Zestimate feature.
What you may not know is that the credence and credibility buyers are placing upon the Zestimate is unfortunately misplaced.
Consumers are wrongfully assuming that because Zillow and other similar websites are widely known and used that their information must be accurate.
This is not the case. In fact, by Zillow’s own estimate they’re often off by a median error rate of 5%. But I would propose that’s likely for a master-plan type community where the homes are largely homogenous.
In coastal regions like ours here or when it comes to luxury properties the values we see from Zillow are often off by 10% to 30%.
Consumers wrongfully assume that because Zillow and other similar websites are widely known and used that their information must be accurate.“
There are simply a few things that Zillow’s algorithm can’t account for. Ocean views and the direction from which they’re seen are a good example of this that is relevant to our local market.
Another factor here in Mission Beach, for example, is that there are oceanfront properties that are 200 yards from the shoreline but others which are closer to around 20 yards. This can make a big difference in a home’s value but is something Zillow might not account for.
Zillow also can’t differentiate other subtle differences that a human professional could, like the availability of parking, bedroom location, and remodeling and updates.
But that’s where I come in. If you have any other questions or want any further information, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.