Friday, August 14, 2020 / by Todd Dawes
Here are the top 5 reasons why you cannot trust the accuracy of a Zillow “Zestimate" and reason #5 will reveal the ugly truth about Zillow. At the Dawes Team, we guarantee the sale of your home or we will buy it, so this topic has us very “fired up”. We work really hard to get our clients the very best price for their home. The fact that the accuracy of the Zillow “Zestimate” is NOT accurate, creates a huge problem for sellers and buyers. When you’re thinking about selling, you will probably go online to check the value of your home. You enter your address and Zillow pops up their “Zestimate”, a very popular way of guessing what your home is worth. Is Zillow’s estimates accurate? Below are 5 reasons why you can not trust Zillow’s “Zestimates”
#1 Zillow is not looking at your home’s condition and features.
Here’s a recent example: the Zillow “Zestimate” for 5714 Sourdough Place was $348,000, but after seeing the beautiful updates, and the immaculate condition of the home, we knew that it would sell for more. The property was listed at $425,000. Right after that, the Zillow Zestimate went up to $411,000. The home sold during the first open house for $427,000!” If the Seller would have trusted the Zillow “Zestimate" he would have lost $77,000! The truth is, Zillow is guessing and they do not know the condition of your home, nor your improvements, your location and your neighborhood.
#2 Zillow has very little knowledge of your location
Spacious backyard, proximity to the beach, walking distance to schools and beautiful parks, close to great restaurants and shopping, plus easy access to I-95, the turnpike and public transportation can add significant demand and dollars to your home. Location- Location - Location is 70% of a buyer's purchase decision and Zillow has no clue about these crucial details.
#3 Zillow's data if often inaccurate
Why should Zillow they invest in qualified staff to manage and maintain the accuracy of their database when 50% of Zillow’s revenue comes from selling Leads to real estate agents.
They don't even inform unsuspecting buyers when a home has gone under contract! Allowing them to waste precious time and possibly loose out on finding their dream home. Zilliow just wants more buyers making inquiries on their website, so that they can sell more leads to real estate agents. When they give comparable sales, Zillow does not always compare apples to apples. They use an automated algorithm to pick which homes might be comparable to yours! and Zillow’s computers are often way off!
#4 As the market shifts, Zillow’s Zestimate simply cannot keep up with rapid market changes like a rise in interest rates or seasonal adjustments
Their values could be over or understated by thousands of dollars. The only way to determine the true value of your home is to have a proven and reliable professional do a comprehensive evaluation and market analysis, which takes time, expertise and leg work. This process can not be left to automated algorithms, there are too many variables.
#5 The 5th and TOP reason your home's Zillow “Zestimate” may not be accurate . . . Zillow is buying and selling homes like yours for a profit!
That’s right, Zillow low balls your home, buys it, and flips it for a profit! How convenient for Zillow! They have positioned themselves as the "Gold Standard" for real estate values online, similar to a Kelley Blue Book for Real Estate, yet they are offering to buy home! They add a few minor updates and sell the homes for a profit - its called ‘flipping"! Zillow tells the world: "This is what we guesstimate your house is worth.” Zillow then makes offers to desperate sellers who need to sell fast. Sure, that seller may get quick cash, but often leaving a pile of money on the table. Oh! did I mention, Zillow does not charge a commission, but they do make offers on homes well below market value and they charge 7% or more and call it a “service fee”. They turn around and advertise that they do not charge a commission! How clever is that?!! Is it fair for a home owner who needs to sell their home to have Zillow under value their property so they can fill some investor’s pocket? Selling your home to Zillow might work for a seller who needs a quick cash sale, but even our local investors will often pay more than Zillow for the homes. Once Zillow obtains the contact information of motivated sellers, they sell this information to Agents in return for 35% of the commission or attempt to buy the home below market value and flip it for a profit. In Zillow's world the consumers do not need real estate agents representing their best interests. They believe all can be done online with their very powerful websites and algorithms. Time and time again we find cases where home sellers lost tens of thousands of dollars in equity by the lure of the quick cash sale. Our objective is to get home sellers the most amount of money for their home. In Fact, we guarantee it in writing! Now that you know the ugly truth about online home evaluation services is Zillow underestimating the value of your home?
Get a FREE market analysis and home valuation by a trusted professional with no gimmicks, no hidden agendas and no obligation to sell your home at www.DawesFreeHomeValue.com
You can always call or text me direct at 954.240.9680
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