Why You Should NEVER Trust the "Zestimate"
Posted: March 01, 2018 by Katherine Deskins
If you needed a reason to not trust Zillow's popular property valuation tool, the "Zestimate," here's a good one. This is a mobile home that was last listed in 2014 for $12,000. It needs work, is 900 square feet, is located in Massachusetts, and the Zestimate is $1.8 million.
Yes, you read that right.
Zillow uses an algorithm to determine property values, and more often than not they are tens of thousands of dollars off (take it from a licensed Realtor whose profession is based on evaluating properties correctly). If Zillow can be MILLIONS of dollars off on a property value, do you really think you should trust it as a tool to help you determine an offer price on that home you've been eyeing, or a list price on the home you're looking to sell? Some lenders (not very good ones) even use the Zestimate to determine refinance rates for homeowners. How scary is that?
This is the first of many blog posts on why #zillowsucks, so if you're hungry for more just stay tuned!
If you want a professional to help you determine a property value in the current market, you've come to the right place. Kadabra is here to help you buy or sell a home with as little stress as possible. Contact us today for a market analysis!