The Scoop on Home Valuations
Computer generated Home Valuations can be useful tools to get a quick read on your home’s value. The best home valuation tools, such as the one I use (pictured left), will allow you to see a list of very recent sold prices (within 6 months) from the MLS for homes near your own. You probably have a general idea of the condition and size of the homes closest to your own and how your home compares. So with a list of sold homes nearby, you can compare and contrast your property and get an idea of where your home stands. If you would like to run your home through my home valuation tool, click here. Feel free to let me know what you think about the accuracy. On the North Shore, with such diverse housing stock, auto-valuation tools can run into accuracy issues. I found my own home to be quite accurate with this tool so would be curious to hear about your own experience.
Of course, I am always happy to create a complimentary custom home valuation for you which will provide far more detail and accuracy. Whether you just want to stay on top of the market or need a valuation for estate planning or refinancing purposes, I’m happy to help. Just let me know by calling or emailing me!
Zillow’s Zestimate Debunked
Home Valuations that only feature an estimate of your home’s selling price are often inaccurate and, as a seller, can even adversely affect your ability to sell. Sometimes buyers take those estimates as gospel and will “believe”
that a home is worth no more than its auto-valuation estimate – despite what nearby comparable home prices indicate. Whenever I list a property, one of the many steps I take is to check the main auto-valuation websites and work with the homeowner to correct the values indicated (if inaccurate) whenever possible. As an example of home valuations gone awry, Zillow’s own CEO’s home sold for 40% less than his Zillow Zestimate! Note the $1,750,405.00 Zestimate. Yet the home sold for $1,050,000 on February 29, 2016!
Accuracy of Zestimates in Metro Chicago
In Chicago, the Zestimate sports a median error rate of 4.7%! That means a home with a $1,000,000 Zestimate has a 50/50 chance of selling between $953,000 and $1,047,000.
In the Chicago area, 14.2% of homes are off by more than 10% meaning that homes with a $1M Zestimate would actually sell for no more than $900K or over $1.1M!
13% of Chicago area home Zestimates are off by more than 20% so that a $1M Zestimate home will actually sell for less than $800K or more than $1.2M!
While automated home valuations can give you some idea of pricing, whether buying or selling, it is never a good idea to rely too heavily upon their accuracy since nothing can replace a custom market analysis by a real estate professional. Should you ever need a market analysis for selling, refinancing, estate planning or just staying on top of the market, I am happy to provide you with a complimentary home valuation at any time! Email me here!
Below is an excerpt from Zillow’s own website describing the accuracy of the Zestimate. Click on additional details from Inman News below.
The median error rate for Zestimates in Chicago is 4.7%