Zillow® is a very popular public website used by many consumers to explore the real estate market. It is a helpful resource, but how accurate are Zestimates® (Zillow’s estimated home values)?
Even according to their own statistics, Zestimates® are not very accurate, especially in the Tampa area. Zillow® releases a report card on their Zestimates® and their most recent, released on August 25, 2015, awards only 2 out of five stars for Tampa.
What is required to create an accurate assessment of a home’s value?
Comparable home sales are a very important part of the formula to assess value. In areas like Tampa, comparable homes in a value assessment are typically restricted to the home’s community. Surrounding homes in other communities have some influence on the value, but communities are often very distinct and therefore, comparable sales will usually be chosen from sales within that home’s community.
Adjustments are the value additions and subtractions made for various qualities of the home such as additional bedrooms and bathrooms, upgrades, lot characteristics and similar differences. Upgrades do not have a dollar for dollar effect on a home’s value. The value attached to the adjustments is very specific to each location.
Tampa Realtors® have access to very strong resources not available to the general public. In addition, their knowledge of the local area is invaluable for giving both an accurate assessment of a home’s value, as well as a strategic price point for the current market. Both are extremely important for selling a home for the best possible price and within a good time frame.
When you’re considering selling your home, it is important for you to get an accurate valuation in order to make important decisions about whether to put your house up for sale and to plan on what you can do after the sale. When putting it on the market for sale, pricing the home is the most important factor in the selling process.
Buyers also need accurate home value and market information in order to negotiate the best possible sales contract for their new home.
A knowledgeable local Realtor® provides both buyers and sellers with the most up-to-date information needed for a successful transaction. Having a Realtor® represent you (as a buyer or a seller) means that you will have someone negotiating the best price and terms for you in a market that she knows well.
