Home Appraisal Values on Zillow Explained
Is a Zillow Home Value Estimate Accurate?
Home buyers and sellers should know that the home value estimated by Zillow is only accurate sometimes.
There are numerous Internet tools available today when selling or buying a home and doing research. Resources are readily available for finding properties, listings, viewing details, and for getting advice on selling and buying – as well as access to online calculators for pricing. Zillow offers one such app.
The Zillow Zestimate™
Zillow has a trademark on the clever term, “Zestimate,” which is a calculation on a home’s value. Unfortunately, these home values are not always accurate and yet are very easy to come by.
Because of these inaccuracies encountered when selling or buying a home, one should never rely solely on Zillow estimates to make decisions! Accurate local information is related by professionals in real estate and NOT by online estimators of home value.
Online home-value appraisal tools have yet to consistently deliver accurate and fair local market home values.
The Assessed Value of a Home
One of the value factors that Zillow uses in its formula for estimating home values is the property’s assessed value, from tax records.
This assessed home value does not usually correlate with the market value of a property – the going and current price of a home in the area where it is being sold based on other similar homes nearby. Instead, the purpose of the assessed value of a property is to collect its property taxes. Most of the time, these rates are below the actual market price of a home, especially if the home’s property value has not been assessed recently by the city where it is located. Market volatility and home trends are just two of the reasons why the market value and the assessed value for a home are often different.
A professional real estate agent will not use a property’s assessed value when deciding on market value. The home’s assessed value is to be used for tax assessments only.
How Zillow IS Useful
Everything about Zillow except for their Zestimates IS of value.
Integrated maps on the Zillow site with each listing help potential buyers survey the property and what is surrounding the property.
Other helpful Zillow information includes: the number of bedrooms and baths per home; its square footage, age, and size of the lot; and tax info. One of the most significant advantages for potential buyers is the data Zillow supplies on past property ownership and what was paid for the property over time. This sales history can prove invaluable in discerning the trends affecting appreciation or depreciation for a property over time.
From the perspective of the seller, Zillow provides visuals of the property. This stimulates buyers to schedule appointments to view the property with a real estate agent. The visual images also help potential buyers to screen-out homes that don’t have what they are looking for, which can save a lot of time and frustration over the course of a house hunt!
Zillow Is Still Great When House Hunting
With a smartphone in hand, you can get a lot of information about a home you are interested in, even while sitting in front of the potential house! Thank you Zillow for that convenience.
However, it would be best if you NEVER thought that a Zillow home value is what the home is actually worth.
Calculating the Worth of My Home
Always rely on something other than a home value estimator. The best way to get your property value is to speak with a real estate professional.
By hiring a real estate appraiser and a local real estate agent, you will be provided with an accurate appraisal, and your professional realtor will give you a competitive market analysis as well.
Both will take an in-depth look at your property using comparable sales data. An online home value estimator such as Zillow Zestimates cannot do this. By visiting your property, professionals can better-understand its strengths and weaknesses and special details.
Proper home pricing is an art and a science rolled into one. It is not accomplished when you trust a computer-generated value generated from across the country, whether from Zillow or from another online valuation tool.
Always consult a local real estate professional like Katie McNeill or a competent appraiser if you want an accurate home value. Online home appraisal tools are great for ballpark estimates, but every home has extenuating circumstances that must be considered before a true, accurate, and fair price is determined for a property for sale.
Excellence in Real Estate Services throughout Northeast Ohio and Lake County
The Katie McNeill Team’s approach is designed to leverage our combined real estate knowledge, years of experience, and negotiating and management skills to provide the experience and service our customers and clients deserve. We feel that we are exceptionally qualified to help both buyers and sellers throughout northeast Ohio in their real estate transactions. We look forward to working with you! And yes, we have a real estate appraisal tool also – use it as an estimate only to get you started in your journey!
