The Truth About Your
Zestimate
By Deborah Bly , The Bly Team
Sixty-eight percent * of sellers today rely on the web to prepare and do their research , before they speak with a professional about selling their home . Many are turning to Automated home valuations from third-party websites such as Zillow , Trulia and otherfree MLS sites that are popping up all over the web .
Last year in 2016 over 16 billion dollars ($ 16,000,000,000.00 = Lots of zeros !) was spent in the Real Estate space by companies like these , vying to win consumer attention and to get consumers to “ take action ”. This huge spend indicates how much the consumer public values internet based research tooling . Internet based information service providers understand this fact intimately .
So … just how accurate is that online “ Zestimate ” of home value ?
Websites such as Zillow collect their data from deed recordings in a geographical area , as well as MLS data , to develop an average of values surrounding a specific home . That “ Zestimate ”, by default , has an associated margin of error . Any AVM ( Automated Valuation Model ) is subjective and only takes into account numeric data . They are after all , just bots … computer algorithms running on a set of fixed variables .
While the data collected is remarkable , what Zillow ( and other sites like it ) cannot account for , are finishes or updates done to the home . Nor is Zillow able to smell a cat , see the green shag carpet , harvest gold appliances , or hear the freeway noise in the background .
Zillow is the first voice to point out in their Zestimate is indeed just that , a Zestimate , not an estimate . Zillow , while a great resource for data , has no intention of replacing the Realtor . Their business model actually relies on Realtors in order to be successful and is NOT the authoritative statement of your home ’ s value .
Ultimately , with many factors to look at , there is no perfect science in assessing a home ’ s optimum list price . Even with data on past sold ’ s , professional market knowledge and experience , it is the consumer , The Smith family and The Johnson ’ s , that determine a home ’ s value .
League City Market Temperature YTD March 2017 VS March 2016
The League City market is still showing a slow stable and stable increase in market value , up 3.7 % YTD ( year to date ) over 2016 market . “
Month / YTD Comparison
YTD March 2016
YTD March 2017
Median Price $ 244,950 $ 254,000
# of Single Family Homes Sold
336 355
March 2016 vs March 2017 - There was a dollar increase of $ 9,050 , representing a 3.7 % increase .
* Zillow housing trends report .
MOMENTUM / May 2017 33