Most homeowners in the United States rely on Zillow Zestimates as their one and only source for home valuations.
Sadly, as pointed out by the mainstream media below, this is one of the worst places to obtain an estimate of your home's value.
The LA Times mentions that in San Francisco, CA the median home value is approximately $1,008,000. At an inaccuracy rate of 11.6%, this equates to about $117,000. This number alone should crush the expectation that computers are going to provide you with the most accurate answer out there for the valuation of your home.
According to the LA Times, Zillow’s very own CEO, Spencer Rascoff, stated that they're "a good starting point", but "Zestimates" have a "median error rate" of about 8% nationwide.
Los Angeles Times:
US News Real Estate:
Here are just three of the reasons why, as a homeowner in South Florida, you should trust a human, not an algorithm when it comes to your home's value.
1. Zillow's Error Rate
Zillow has a median error rate of 6.5% and a two star (out of 4) Zestimate Accuracy rating in the Miami-Ft Lauderdale metro area.
That means that Zestimates for half of the homes in the Miami-Ft Lauderdale metro area are within 6.5% of the selling price, and half are off by more than 6.5%.
Furthermore, only 40.7% of homes with Zestimates are within 5% of the sale price.
2. Mistakes or Omissions in Property Tax Records
The basic information that makes up a home, such as bedroom/bath count, gross living area, and lot size must be accurate for you to receive an accurate value for your home.
Property tax records are not always 100% accurate. Unless you've edited your home facts on Zillow, the information they consider in your home's valuation may not be correct and neither is your home's value.
3. Upgrades and Unique Features Unaccounted For
Zillow doesn't know the difference between an Old Spanish home built in the 1920's, a Mid-Century Ranch built in the 50's or a faux Mediterranean built in the 2000's.
It also doesn't know if your home has been upgraded. Is the kitchen new? How about the roof? Impact-resistant windows and doors? These details matter when placing a value on your home.
Is your home located on a more desirable street than the home Zillow's algorithm is using to compare it to? Five blocks can make a world of difference. Zillow doesn't know that.
Trust a Human, Not an Algorithm
As proud members of the Coral Gables community who work, play, and sell homes here, we would be happy to send you a free custom report of exactly what your home is worth.
Technology is great, but when it comes to the value of your largest financial asset, it's best to trust a human.
Want an accurate assessment of what your home is worth in today's market? Click below and get a FREE custom report in just two easy steps!