Should You Use Zillow Home Values When Pricing Your Investment Property?
Should You Use Zillow Home Values When Pricing Your Investment Property?
Abstract
Table of Contents What Is Zestimate? Can Zillow Give an Accurate Estimate of Home Value? Benefits of Using Zillow Home Values Drawbacks of Using Zillow Home Values Should You Use Zillow Home Values? How to Accurately Price Your Investment Property Conclusion While it seems like it would be a fast way to price your home and sell it quickly, there are some downsides to using Zillow home values. To get an estimate of a home's value, Zillow takes into account the prices of comparable homes in your neighborhood, as well as the local market conditions. Can Zillow Give an Accurate Estimate of Home Value? Is Zillow accurate for home values? If yes, how accurate are Zillow home values? According to the company, its national median error rate for on-market homes is 1.9%. It means that Zillow's estimated prices for houses for sale listed on its website would show an average error rate of about 2%. Zillow's home value estimates are based on a combination of publicly-available data and proprietary algorithms. A starting point for determining a home's value Zestimates offer a reliable starting point for determining a home's value. A home value comparison feature Zillow offers a home value comparison feature that allows you to compare the price of your home to similar homes in your area. Drawbacks of Using Zillow Home Values Along with the benefits, using Zillow home values comes with the following drawbacks: 1. High error rate for off-market homes Zillow home values come with a high error rate for off-market homes, which comes at a national median error rate of 6.9%. Unfortunately, it means that many off-market homes are valued at a lesser price than they should be, which gives buyers an inaccurate impression of their buying power.