Are you considering selling your house and wonder what the value of your home is? I can’t tell you how many times people have asked me about the value of their house and added that Zillow estimates my house at… Guess what the Zillow Zestimate is only as good as the information that is data used in the valuation model. Additionally, it lacks the ability to adjust for age/condition and construction quality to name a few adjustments that an appraisal preformed by a certified appraiser or CMA (Competitive Market Analysis) prepared by a licensed real estate agent. I generally tell property owners that is ball park figure and does not necessary reflect market value. Zillow has even checked its Zestimate Accuracy versus the actual sales price sold. For example, the Zillow Zestimates (in Tampa, Florida) are currently only within 5% of the final sale price 36.6% of the time. The following table was prepared by Zillow to show its accuracy as of June 2014:
As depicted in the above chart, the Zillow Zestimates produce a good estimate of value. However, they are within 10% of the final sales price only 62.6% of the time in Tampa Florida Market. Although these Zillow Zestimates are not that accurate in our market, the Zillow Zestimates (in Denver, CO) are currently within 5% of the final sale price 53.1% of the time according to June 2014 statistics.
Although Zillow Zestimates are a good starting point to determine your home’s market value, it does not replace an appraisal or CMA for a more accurate market value estimate. It lacks the judgment necessary to provide accurate estimates and is only as good as the data use in the CAMA (Computer Aided Mass Appraisal) model.
If you are interested in buying real estate (home (new or presales), or small investment property), please contact me (Alan Lane with Keller Williams Realty at 2119 W Brandon Blvd, Brandon, Florida 33511) and I can help you find a new home in the Tampa Bay Area. As a life long resident of Central Florida, I can help you find the right property for you whether it is in Lakeland or as far south as Sarasota. The Keller Williams offices of ”Suburban Tampa” include the offices in Brandon, Plant City, Fishhawk Ranch, and our newest office in Valrico. My email address is firstname.lastname@example.org, or call me at 813.205.9280. If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.