Unmasking Zillow’s Zestimate: Why Accuracy Counts and the Value of a Professional Opinion
Mar. 20. 2024
Hello Hello! Ashley here and I am getting a little spicy around my thoughts on Zillow’s Zestimate.
Today, I’m diving into a topic that stirs quite a bit of emotion in the real estate world, especially among us Realtors in the bustling Austin real estate market: the limitations and frustrations surrounding Zillow’s “Zestimate.” While saying Zillow “sucks” might be a bit harsh, it’s no secret that many professionals in our field have a bone to pick with how this giant platform handles property valuations and the misconceptions it can create among potential home buyers and sellers in Austin.
Let’s peel back the curtain on the accuracy of Zillow’s estimates through a series of case studies I’ve personally undertaken. When a homeowner decides to list their property with our team, my trusted associate Tasha takes the first step by capturing a screenshot of the Zillow estimate for the home’s value. But here’s the thing: Zillow’s algorithms can’t see everything. They don’t take into account the nuanced value added by recent home improvements—be it elegant landscaping, sleek new flooring, or a sturdy roof. Nor do they reflect the possible negative impact of a less-than-ideal neighbor or a home that’s seen better days without proper upkeep.
Case and Point Number 1:
The Zestimate for this home was $299,500.
I was able to score my client 2% more…hey I know it isn’t much, but when my clients are trying to get every last drop out of their primary home, $10,000 matters! See the listing HERE.
Now check out this one–
Case Study Number 2:
This lovely home in 78758 (where I purchased my first two Austin properties) has a wide array of homes. Most of the homes are one story 3br 2ba homes, but depending on the street, proximity to major thoroughfares, condition will vary on the price. Homes range from $380,000 to $650,000 in this area–that is a substantial difference!
We decided to price aggressively and priced this home at $525,000 and received a full price offer the first few days on the market! Imagine if this client would have executed a cash offer with Zillow and left all that money on the table?!?
For photos of that beauty click HERE but this dream seller listened to me and we had staging installed, a pre-inspection (listen to my video HERE on why I think pre-inspections are so important) and a new roof paid for by insurance which secured solid, confident buyers on this property!
Understanding the true value of a home in Austin goes beyond what any online tool can offer. It involves a deep dive into various factors, including the current demand in specific neighborhoods. It also involves multiple conversations with other listing agents and having a pulse on the real estate market.
Austin’s real estate market is incredibly hyperlocal. For instance, condos in downtown Austin may linger on the market longer than homes in other areas. Meanwhile, I’ve observed firsthand the buzz around listings in Northern Austin suburbs like Twin Creeks, where the appeal of local schools, low inventory, and the right home size can lead to a flurry of showings. Conversely, a similar home in a lovely Georgetown neighborhood may see less activity simply due to the abundance of available options in that area.
One more case study for you:
These sellers in Avalon (a lovely community in Pflugerville) reached out to me because they noticed how many homes I had sold in the area. Tons in Pflugerville and 4 in the last 18mo in Avalon! So we had a great conversation, they were ready to move fast, I gave them a list of prep items they knocked out over the weekend and voila! We had multiple offers after a few days on the market.
List Price: $675,000 and HERE are the photos of this gem.
Zestimate: $608,500 see below
Do NOT leave money on the table!
The bottom line is this: if you’re seeking an accurate and reliable analysis of what your home is truly worth in the Austin market, turning to Zillow alone may lead you astray. An experienced real estate agent brings invaluable insights, up-to-date data, and a keen understanding of market dynamics that simply can’t be matched by an algorithm.
One of my most watched videos regarding pricing your home and “Thinking like an Appraiser” can be found HERE.
Want a home value analysis today?
No problem! Click HERE, answer a few questions in under a minute and I will be in touch!
I hope you found this blog article invaluable and always happy to schedule a chat!