Zillow's Zestimate is a tool to help consumers determine the value of their homes. While this sounds useful, many homeowners and real estate agents have reported Zestimates to be inaccurate. Before you sell your home with Zillow, here's what you need to know about the accuracy of Zillow's Zestimate.

What Is A Zestimate?

 Zillow's Zestimate is a controversial home valuation tool that relies on public data. It is immensely popular with consumers because it enables buyers and sellers to get fast information about a home's potential worth. However, Zestimate has several limitations, and its lack of accuracy can have real-world consequences for buyers and sellers alike.

As it is not conducted by a licensed appraiser and is limited to what's available in the public sphere, Zillow's Zestimate provides an estimated value of your home. This can prove problematic for off-market homes, as there is often limited public data available, and the Zestimate may not consider important data that affect the home's value. For instance, for homes with recent upgrades or high-end finishes, Zillow's pricing algorithm won't have all of the information it needs to determine its worth accurately.

How Accurate is a Zestimate?

Zillow's Zestimate is generally less accurate than an experienced Realtor's estimate. In some instances, homeowners have found their Zestimate to be thousands of dollars off. According to Zillow itself, around 50% of Zestimates are within 2% accuracy for on-market properties. For properties off-market, the median error rate increases to as high as 7.5%.   

Although a 2% error rate may not seem significant, it can cost sellers thousands of dollars in missed profit. For instance, a home in Brevard County, with the median list price of $359,900, could lose as much as $7,198 due to the Zestimate error margin. 

In addition, because Zestimate relies heavily on past sales and comparable properties, it has difficulty considering rapid market changes. This can translate into significant losses for homeowners in a strong seller's market. Put simply, although a Zestimate can provide you with a general idea of your home value, it's not a reliable replacement for expert opinion. 

How To Get the Most Accurate Home Value

If you're thinking about selling your home in Brevard County, you must understand its actual market value. Here are three things you can do to determine the most accurate home valuation:

• Look at comparable homes: You can get an idea of how much your home might sell for by looking at similar home sales in your neighborhood.
• Ask your neighbors: If your neighbors recently had their home appraised, they may be willing to share the value with you for comparison.
• Request a CMA from an experienced local real estate agent: Licensed realtors are experts in your area's real estate market. They can provide you with an in-depth comparative market analysis report. 

Understanding your home's value can help you make better decisions about buying, selling, refinancing, and negotiating your property taxes. However, home valuation is influenced by more than just the size or address of your house — everything from its condition to its finishings affects its value. An algorithm-driven tool like Zillow's Zestimate is not a substitute for the expertise and guidance of an experienced real estate agent.

Get An Accurate Valuation of Your Brevard County Home

Whether you're buying or selling a property in Brevard County, the licensed realtors at Realty World Curri Properties have you covered. Our experienced agents understand the Brevard County real estate market and know how to get you top dollar for your home! We work closely with buyers and sellers throughout Brevard County to maximize profit, secure deals, and make real estate dreams a reality. Get a complimentary comparative market analysis report for your property today!