You may have heard a Realtor say it - Zillow is not a trustworthy site for accurate home values. Often times they don't just say it, they shout it! They ball up their fists and stomp their feet with big eyes and smoke-blowing ears. It is one of the most frustrating parts of being a Realtor today - the Zestimate. We watch clients believe they have information that is accurate when in actuality they only have enough information to be dangerous. Once and for all, we'd like to explain why Zillow and other websites estimates of your home's value are rarely, if ever, correct. (And why they were never meant to be in the first place.)
First, how do Zillow and other sites calculate a "Zestimate," or estimated home market value?
What is a Zestimate?