Have you recently used the Zillow Real Estate Value Tool and find yourself curious about its accuracy?
In my recent article about home valuations, I discussed some of the benefits and pitfalls of using an online home valuation tool. But apparently my "dusting" of the subject caused a few people to want to know more.
Specifically, they asked about whether the Zillow real estate value of their home was more or less than its current market value.
The Accuracy Of Your Zillow Real Estate Value
First of all, I am somebody who really appreciates the technology gains that have arrived for the real estate industry.
There is a (rather large) school of thought among my peers that says machines will never replace real estate agents when determining the fair market value of a home, but I am not of that mindset.
The value of a home is simply related to what a buyer would have to spend in order to get something very similar to the subject home. There are variables that must be considered, and the current state of supply and demand influences valuation (lots of buyers trying to buy few homes drive prices up, while few buyers and lots of homes on the market creates pricing pressure).
Ultimately, the majority of homes will eventually be accurately valued with an online tool, as all these variables are learned, stored, and programmed. Right now it appears as if the Zillow Real Estate Value Tool is leading the way towards this solution.
Local Zillow Real Estate Value
Unfortunately, the Zillow real estate value is not yet accurate. They utilize far too few of the critical variables to determine the true market value of your home, so be sure to consult a top real estate professional before deciding upon your housing course of action.
I would not expect the Zillow Real Estate Value Tool to be accurate enough to rely on for at least 3 to 5 more years, as they have data collection issues which they have yet to solve.
Don't be afraid to check your home's value on the Zillow website, but if you want more than just a ballpark figure, you currently need to get an analysis from a human being.
I would like to be that human being for you :), just drop me a note and we can schedule a time for a more thorough analysis than a simple Zillow real estate value of your home.
Joe Manausa, MBA is a 26 year veteran of real estate brokerage in Tallahassee, Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.