One of the buzzwords I often hear when talking to clients interested in selling their home is "zestimate", or Zillow.com's estimate of your home's value. All too often, these clients are relying on the zestimate, Redfin, or Realtor.com valuation tool as an indicator of what their home would sell for when listed.
While I think it's good for potential home sellers to do their research, here's why I don't think you should solely rely on a "zestimate" or any other online valuation tool:
- it's based on a computer algorithm, not a live person seeing your home, its features and customizations. There's no substitute for an experienced real estate professional who knows your neighborhood well seeing your home in person.
- it's based on statistical averages. Does your home have a lovely landscaped backyard that buyers would love? The online valuation tools would not take that into account. Instead, they would look at the basics: number of bedrooms, bathrooms, square footage.
And if you've kept up with the recent negative press around Zillow and how their property valuation tool backfired within their own business, it may help to reach out to a real, live realtor or listing agent, like myself, to weigh your options.
