Ask Phyllis: a blog series of frequently asked real estate questions.
How accurate are Zillow’s values
Dear Phyllis,
My daughter is selling her Pismo Beach home because her husband got a job transfer. She contacted the Realtor who sold the house to them fifteen years ago. I am a fan of Zillow and track all of my family’s real estate values. The Zestimate on her home is $1,786,550. However, her Realtor suggested she list at $1,385,000, and the house should sell over $1,400,000. This is such a discrepancy how accurate are Zillow’s values? Do you think my daughter should get a second opinion from another Realtor?
Betty
Dear Betty,
How accurate are Zillow’s values is a very common question. Their Zestimates provide a general idea of a property’s value, but their accuracy varies. They rely on public data and algorithms. However, they don’t account for unique features, upgrades, or condition. I have seen Zestimates off by 20% or even more (based on the final selling price)—sometimes they are too high and others too low. I don’t believe these online estimators can consider location nuances, such as close proximity to a freeway or high-tension lines. Also, I don’t know how they would compare a 10,000-square-foot level lot versus a terraced one.
Zestimates are most reliable in areas with many recent comparable sales and active listings. However, they are often less accurate for unique homes or markets with limited data.
I suggest you also check your daughter’s home value on Realtor.com and Redfin. After checking, your daughter should share her concerns with her Realtor. She can also request that they seek the opinion of other real estate agents in their office. You will likely find that the valuations on each site are different and often greatly vary. Additionally, there is no harm in your daughter seeking a second opinion from a different Realtor.
