Zestimates
If you have searched for real estate on-line, the chances are good that you have looked at, or at least heard of Zillow. Zillow is one of the most popular real estate sites on the web, and all of Windermere’s listings are posted on it. Of all the tools the site has to offer, the most frequently discussed one has to be the Zestimate. A Zestimate is Zillow’s estimate of the current value of a home, and can be obtained for millions of houses in the US, whether they are on the market or not.
Discussions about Zestimates are primarily regarding their accuracy. Zillow clearly points out on their web site that a Zestimate is calculated using statistical methods, not by actually visiting the home to understand its unique features. Statistical methods are most applicable in urban areas and developments where square footage, the number of bedrooms, lot size and similar data can do a good job of describing a home. They are much less useful for unique properties such as waterfront or view properties, properties that differ significantly from those surrounding them, or properties with significant value in outbuildings and land improvements.
Zillow recognizes the limitations of Zestimates and publishes statistics about their accuracy on their web site. According to the site, Kitsap County enjoys one of the highest Zestimate accuracy rates in Washington. Even so, there is a median Zestimate error of 9.5% in the county, and a Zestimate is within 10% of the actual selling price only 52% of the time.
To put that in perspective, if 100 homes sold for $300,000 in Kitsap County, 52% of them would have Zestimates that ranged between $270,000 and $330,000, a $60,000 spread. The remaining 48% would fall outside that range.
It is always interesting to know what your house might be worth today, and a Zestimate can give you a feel for that. But if you are considering buying or selling a home, the margin of error in a Zestimate is too wide. You need a CMA (comparative market analysis) from a reputable real estate agent or an appraisal to know the price you should ask or pay.
To learn more about Zestimates click on the link below:
To see the full accuracy statistics on Zestimates for all areas of the US click on the link below. After clicking on the link, to see details about counties in Washington, click on States/Counties in the table header, then on Washington:
