According to the 2014 National Association of Realtors 90 percent of buyers start their search online. This means that by the time the buyer goes to look at houses they have most likely already been on zillow and seen the zestimate for the property. But the question remains how accurate are these zestimates.
Zillow’s estimates are based on an algorithm that compares all its available data to make an estimation of your homes value. It takes into account home facts, location and market conditions. The more data zillow has available the more accurately zillow can estimate the value.
Most real estate agents use this same data to estimate property value but only as a starting point. They combine this with other market research and analysis before coming to their final conclusion of value.
So yes zillow estimates can be a good tool to help you or a prospective buyer find the value of a home. But do these estimates affect the value of your home?
Yes, in a small way it can. Since most people have looked online before purchasing a home and have most likely seen these zestimates there is a good chance people looking at your home will be swayed by these numbers. This doesn’t mean your house will sell for the exact amount the zestimate says. In fact zillow doesn’t claim to be even 80% accurate. They just want to give people a tool to help value a home.
The current condition of your home has a lot to do with the final price of your homes value, for example if a similar home to yours sold down the street for $175,000 and it had a recently updated kitchen, new floors, new paint and looked more appealing, you might have to take care of those repairs first in order to sell.
The other option is find an AS-IS buyer to take the home in it’s current condition. These buyers usually pay cash but are looking for a discount to take care of the work and bring the home up to date.
If you want to sell your home for cash, we offer a great alternative that allows you to sell with no headache and no commission or fees.