Today I am talking about Zillow’s Zestimates. Many people have some knowledge about these home estimates and usually have an opinion about them. In fact, when I go to a listing appointment, sellers typically already have a Zestimate of their house.
The Zestimate is a good estimate of your home’s value. However, it’s created by an algorithm that uses comparable properties in the area and isn’t weighted by certain factors, such as if you’ve made any improvements to your home. In other words, a Zestimate cannot distinguish between a home with $80,000 worth of kitchen upgrades and a similar home without any such renovations. Obviously, since these factors are overlooked by the Zestimate, there is some margin for error in the value it assigns to your property.
Also, Zestimates use an algorithm for your property tax amount and weighs the last transaction in the area the heaviest. If you monitor your property taxes over a long period of time, you will notice some fluctuation because of this. If the last house that sold was a foreclosure, it will weigh your property tax value down.
If you would like a more exact value of your home, you should hire a licensed Realtor. That person can go to your home and give you a full market report on it.
If you have any additional questions or are interested in buying or selling in the Tucson area, please feel free to contact me. I look forward to speaking with you soon.