Last Updated on December 3, 2020 by HortonTeam
Why is your home’s Zestimate lower than the actual listing price? Why do homebuyers trust Zillow’s Zestimate? This blog post will answer these questions as we help you, as a home seller, see what the problems are, understand what you get in the 2020 update, and how our team could help you.
What is Zillow’s Zestimate?
Zillow is the largest real estate website. As a well-known real estate database in America, Zillow has developed an idea of bringing the information to those who need it through Zestimates. This idea became a hit in 2016 for both home sellers and buyers. It lessened the stress of going into publicly available data to compare the prices of homes for sale. Instead of searching and digging into these public records, users were able to focus their search solely on Zillow.
Because buyers can use the Zestimate, they no longer need to look into public domains to compare properties on the market. This is also beneficial for you as a seller. That’s one problem solved. However, there are still some things that Zillow cannot solve, particularly that Zillow’s Zestimate is not an appraisal or a real CMA comparative market analysis....there are still some things that Zillow cannot solve, particularly that Zillow’s Zestimate is not an appraisal or a real CMA comparative market analysis. Click To Tweet
Zillow can’t investigate your home. They can’t go there personally to check for amenities available that would affect your listing price. They can visually see the outside of your house but not what is under the roof and behind the walls on either your house nor the neighboring homes that they are comparing to. As a result, your property gets a low Zestimate – and that is what buyers see online.
Homebuyers often come to Zillow to look for houses on the market. That means if you’re a home seller and your house has a low Zestimate on Zillow, the result may not be good. Buyers might think you’re not pricing your home correctly.
Since Zillow’s Zestimate is only based on public records, the available data are not updated often. For this reason, homebuyers should not rely on it, but they often do. Buyers trust Zillow when it comes to looking for homes for sale, especially after Zillow’s update.
I’ve learned that, somehow, Zillow managed to reach 1.9% accuracy on Zestimate. In some way, that’s a little closer to your home’s listing price. However, it’s still not going to be good enough for you as a seller.
Zillow managed to raise the price accuracy that shows on your home’s Zestimate by using artificial intelligence (AI). These AI analyze the available photos on your listing. Now, through these photos, it could tell if you have updated your property. If you have updated your kitchen’s countertop, or if your house has a better curb appeal, your listing’s Zestimate could increase. Because of this, you can improve your home’s Zestimate just by updating your listing on Zillow.
The Horton Team can help you increase your home’s Zestimate by following simple steps. We can also give you some tips to beating Zillow – without any charge. With our help you can reach your home’s ultimate potential and even help you get your home ready to sell and sell for more money.