22. But Zillow says…

Zillow. Setting homeowners expectations too high since 2005.

Now, hear me out before you click goodbye and consider this one thing…

The CEO of Zillow, Spencer Rascoff sold his house for 40% less than the Zillow estimate. His home at 3808 E Madison Street in Seattle sold on 2/29/16 for $1,050,000. The very next day, the “Zestimate” was $1,575,201.

Pretty large gap for the CEO of Zillow!

In all fairness, Zillow uses several different data points to come up with their valuations. Some data may prove somewhat accurate comparing your home to your neighbors, such as square footage, year built, etc. However, there are an infinite number of other factors involved such as location, updating, condition, and other factors. Zillow also has a difficult time distinguishing subdivisions, so if a nearby subdivision sells in a higher price range, Zillow will give you a higher value, but unfortunately the market will not.

So how do you get an accurate valuation? You start by looking at your property from an objective standpoint. For example, in Florida a 30 year shingle usually has a life of about 20-22 years. It’s difficult to say…”new roof 16 years ago”. If your property will need a roof, you need to figure that into your valuation.

Many counties offer similar comparables (comps) to your home on their website. Drive by some recently sold homes and see their condition. Were they updated? Similar square footage?

The important thing to remember is that anything (house, car, antique) is only worth what someone is willing to pay for it.

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