Although Zillow provides its visitors with estimates of home values, the discrepancy of the actual price in which a home is sold and the price in which a home is “Zestimated” is at times significant.
In a recent article by Amy Fontinelle on investopedia.com she explains how these discrepancies come about. The main factor is simple; inaccurate data. Zillow and websites like Zillow, have data that is either outdated or simply incorrect. Along with this, any updates or upgrades made to a home or its property that were not reported appropriately can impact a home’s Zestimate.
Most importantly Zillow uses an Algorithm to collect its information. This algorithm is constantly changing which affects estimates weekly. This algorithm also pulls public data which includes the date and price of the last sale of the property and the amount of the last paid property taxes. This algorithm will also collect information from various areas, sometimes grouping vastly different neighborhoods together which results in such inconsistencies.
To prove Zillow’s Zestimates are undeniably inaccurate, an article written by Teke Wiggin on inman.com points out that the CEO of Zillow, Spencer Rascoff, sold his home for $1.05 million. While this may seem like a substantial amount of money, it’s important to know that the day before Rascoff found that Zillow had estimated the home to be worth $1.75 million.
With this being said, it is important explore other resources besides Zillow to determine the value of a home.
For the true value of your home, contact The Glander Group, at Coldwell Banker in Spring Lake at 732-233-9630.
-Written by Dayna Flores, Marketing & Events Coordinator at The Glander Group.