Zillow Exec Sold Home For 40% Less Than Zestimate
Think your Zestimate is a good estimation of your home's value? Think again... The CEO of Zillow, Spencer Rascoff, recently sold his Seattle home for $1.05 million. His Zestimate value was $1.75 million, or about 40% more than the selling price.
Unfortunately, many homeowners look to their Zestimate for a home value estimate. This may be a costly mistake, especially for someone who is considering selling their home. Automated valuation models, like Zestimates, often have large inaccuracies, and can set homeowners up for disappointment when they find out what true market value is. What is "true market value?" True market value is simply how much a buyer is willing to pay for a home. A professional Realtor® who is an expert in your area, can help predict how much a buyer might be willing to pay for your home.
What does this mean back home in NJ? We took a look directly at Zillow's reported Zestimate accuracy. You can find the link at the very bottom of their website. In Atlantic County the median Zestimate error is 11.3%, and Zestmates are within 20% of the sold price only 66.5% of the time. This means the Zestimate Value for half of the homes to sell in Atlantic County was more than 11.3% off. In Cape May County the median Zestimate error is 9% and they're within 20% of the sold price only 78% of the time. More troubling is the Zesimate is only within 5% of the selling price 26% of the time in Atlantic County, and 32.1% of the time in Cape May County.
On Zillow's "what is a Zestimate" page they encourage a comparative marketing analysis form a real estate agent as well as a professional appraisal.
If you're considering selling your home, or are just curious about the value, a Zesitmate statistically is not a true indication of current market value. Enter your address below for a professional value estimate!
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