Zillow Real Estate Value – Fact Or Fiction?

Have you recently used the  Zillow Real Estate Value Tool and find yourself curious about its accuracy?

In my recent article about home valuations, I discussed some of the benefits and pitfalls of using an online home valuation tool. But apparently my “dusting” of the subject caused a few people to want to know more.

Specifically, they asked about whether the  Zillow real estate value of their home was more or less than its current market value.

The Accuracy Of Your Zillow Real Estate Value

Zillow Real Estate ValueFirst of all, I am somebody who really appreciates the technology gains that have arrived for the real estate industry.

The ability to analyze the Tallahassee real estate market is so much easier today than it was 22 years ago when I first became a real estate agent in Tallahassee.

There is a (rather large) school of thought among my peers that says machines will never replace real estate agents when determining the fair market value of a home, but I am not of that mindset.

The value of a home is simply related to what a buyer would have to spend in order to get something very similar to the subject home. There are variables that must be considered, and the current state of supply and demand influences valuation (lots of buyers trying to buy few homes drive prices up, while few buyers and lots of homes on the market creates pricing pressure).

Ultimately, the majority of homes will eventually be accurately valued with an online tool, as all these variables are learned, stored, and programmed. Right now it appears as if the  Zillow Real Estate Value Tool is leading the way towards this solution.

Local Zillow Real Estate Value

Unfortunately, the Zillow real estate value is not yet accurate. They utilize far too few of the critical variables to determine the true market value of your home, so be sure to consult a top real estate professional before deciding upon your housing course of action.

I would not expect the Zillow Real Estate Value Tool to be accurate enough to rely on for at least 3 to 5 more years, as they have data collection issues which they have yet to solve.

Don’t be afraid to check your home’s value on the Zillow website, but if you want more than just a ballpark figure, you currently need to get an analysis from a human being.

I would like to be that human being for you :), just drop me a note and we can schedule a time for a more thorough analysis than a simple Zillow real estate value of your home.

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Talk to an expert in the market that can help you make a full evaluation of your situation

If you are thinking about selling your home but are not sure if the time is right, here are a few questions we think you should consider:

  • Do you plan on spending more or less on the next home?
  • Are you capable of moving even if you want to do so?
  • Are the homes you would consider for a move rising or falling in value?
  • Do you think mortgage interest rates will rise or fall in the foreseeable future?

Why not meet with an expert who can answer your questions, provide market supply and demand information, and then provide some insight and clarification that you might not have previously considered. If you think this will help, just reach out and we'll be there for you.

About Joe Manausa, MBA

Joe Manausa, MBA is a 23+ year veteran of real estate brokerage in the State of Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.

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