Why You Can't Trust Zillow's Zestimate

Zillow has become one of the most popular online real estate information resources, but you have to be careful with the Zestimate feature. This valuation is almost always inaccurate.

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As you may know, Zillow is one of the most popular online home valuation tools. Their Zestimate is the site's online evaluation of your home's value. How do you know if the Zestimate is correct?

Unfortunately, it probably isn't.

I wanted to give you a heads-up against relying on Zillow to make any sort of real estate decision, whether you're buying or selling a home. Buyers and sellers rely more and more on these online evaluations, and yet, these estimates are just that–estimates. The best illustration of this comes from the CEO of Zillow himself, whose home sold for 40% less than the Zestimate! 

I won't deny that Zillow is a great real estate resource, but there are certainly a few caveats. First, remember that there are certain factors that Zillow can't take into account, like an irregular lot size, buyer demand patterns, the local market, home improvements that affect a home's value, or unique circumstances surrounding past home sales.

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Zillow's own CEO sold his home for 40% less than its Zestimate!

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Zillow doesn't get data from the MLS like professional agents do. The MLS is the most complete and accurate source for listings. Professional agents, on the other hand, study the market, live in the market, research relevant sales, and have often personally been inside many homes that are for sale or have recently sold. This is the kind of knowledge that you need to truly determine the value of a home.

In fact, Zillow even states that their median nationwide error is 7.9%, and half of their Zestimates are off by even more than that. You deserve better! This is even more true for luxury homes because of their unique features.

If you have questions about your home's actual value or you have any questions about the Northern New Jersey real estate market, give me a call or send me an email. I'd love to help you out in any way I can!