An old adage in real estate sales is “your home is worth what someone is willing to buy it for.” This suggests that there are many different factors, some arbitrary that go into the valuing of a home.
In today’s internet savvy world, many look to industry leader Zillow for information. But the questions is, “Should I Trust Zillow to Determine My House Value in Port Orchard?”
Don’t trust Zillow for valuing your home. Here’s why.
Should I Trust Zillow to Determine My House Value in Port Orchard
Zillow’s Margin for Error
When it comes to selling your house, you want to make sure you get the most accurate estimate possible. After all, this is likely one of the biggest financial transactions you’ll ever make. So you turn to popular online resources like Zillow for help. But should you really trust Zillow to determine your home’s value in Port Orchard?
Well, it turns out that Zillow isn’t always accurate. In fact, the website has been known to be off by as much as 20% in its estimates. That means if your home is valued at $200,000 on Zillow, it could actually be worth anywhere from $160,000 to $240,000.
Of course, this range can vary depending on the market. In some areas, Zillow has been known to be more accurate than others. But in general, you should take any estimate you get from the website with a grain of salt.
If you’re serious about selling your home, your best bet is to contact a local real estate agent. They will have a much better understanding of the current market conditions in your area and can give you a more accurate estimate of your home’s value.
So if you’re thinking about selling your house in Port Orchard, don’t rely on Zillow for an accurate estimate. Contact a local real estate agent instead. They’ll be able to give you a much better idea of what your home is actually worth.
How Does Zillow Create Estimates
Zillow calls its proprietary estimating tool a “Zestimate.” Even with all the pricing factors placed into the formula, there is still a high margin of error because Zillow isn’t actually looking at your home.
The proprietary formula looks at the market pricing in the area. It will factor in the size of the house, the lot and all features of the home including the number of bedrooms, bathrooms, pools and highlighted features. However, even Zillow will say this is a starting point for a true valuation of your home and should not be considered an appraisal or true value.
The reason is the information Zillow uses is reliant on accessing public records and user input such as realtor sales. However, Zillow cannot discern if your home is the dilapidated eyesore in the community or the completely redone and upgraded home everyone is envious of.
Additionally, Zillow doesn’t discern community pockets. These are very common in larger cities where you can have higher end community just blocks from a mid or lower-end one. These “pockets” can skew or be skewed by larger metro data that Zillow factors in that aren’t pertinent.
The More Accurate Model
Any professional realtor will tell you that pricing a home to sell requires a full understanding of the home itself, the location and current market trends in that area. In fact, most realtors look at Zillow pricing with a bit of disdain because it does make pricing and managing realistic client expectation more difficult.
A realtor will take a look at sales in the pertinent area, creating a radius based on your pocket rather than an entire zip code. He will then compare your home based on size, features, and upgrades to those homes that were recently sold, thus appraised, in the previous 3 to 6 months. This range is contingent on how hot the real estate market is in the area.
He will then compare this information to existing homes on the market, looking at how your home compares to what else buyers are seeing on the market. After all, if yours is a well-kept home being sold next to a completely remodeled home, you might not be able to get the same price per square foot at the other.
Additionally, realtors will consider whether it is a buyer’s or seller’s market. If you want to create a frenzy with a lot of eyes on your property in a seller’s market, you can underprice the home and let the bidding begin. This tactic works in many markets including Port Orchard.