Should I Trust Zillow to Determine My Home Value in Arizona

Determine my house value in arizona

An old adage in real estate sales is “your home is worth what someone is willing to buy it for.” This suggests that there are different factors that go into the valuing of a home.

In today’s internet savvy world, many people go to Zillow to get real estate information. But the question is, “Should I Trust Zillow to Determine My Home Value in Arizona?”

No.

Here’s why you should not trust Zillow for information like your home value.

Should I Trust Zillow to Determine My Home Value in Arizona?

Zillow Estimate Margin for Error

Zillow has been reported 18% to 20% average higher or lower in-home “Zillow estimate”. There are even reports of home values on Zillow climbing in declining market areas.

Let’s think about this for a second. For a $200,000 home, a 20 percent deviation is $40,000. For higher-priced markets like Los Angeles or Miami, a $1 million home could see unrealistic estimations varying from $180,000 to $200,000 or more. That’s a huge difference in pricing.

It could discourage potential buyers that think a home is well out of their price range while giving sellers an unrealistic idea of a selling price point. Hence, this will be the starting point of disagreements homeowners are having with selling agents with regards to properly giving an accurate home value.

Sellers in Arizona think that Zillow Estimate is accurate and use the price they see there as the starting point of their home value.

How Does Zillow Estimate Work

Even with all the pricing factors placed in the formula, it have a high margin of error because Zillow isn’t actually looking at your home. Zillow calls its proprietary estimating tool a “Zestimate.” Basically putting together the word Zillow Estimate.

Proprietary formula looks at the market pricing around the area. It will factor in the size of your home, the features of the home including how many bedrooms you have, bathrooms, if there is pool and other highlighted features. But even Zillow will say that this should not be considered an appraisal or true home value and it is just a starting point for a true valuation of your property.

The reason is the information Zillow uses is reliant on accessing public records and user input such as realtor sales. Zillow cannot discern if your home is the dilapidated eyesore in the community or the completely redone and upgraded home everyone is envious of.

In addition, Zillow doesn’t detect community pockets. These are very common in larger cities where you can have a higher-end community just blocks from a mid or lower-end one. These “pockets” can skew or be skewed by larger metro data that Zillow factors in that aren’t pertinent.

Should I Trust Zillow to Determine My Home Value in Arizona

The More Accurate Model

A professional realtor will tell that getting the accurate home value requires extensive knowledge of the home itself, the location, and current market trends in an area. Most realtors look at Zillow Estimate pricing with contempt because client’s expectation does make pricing and managing realistic more difficult.

A realtor will look at sales in the area, will create a radius based on your pocket rather than an entire zip code.  Then He will compare your home based on the size, features, and any upgrades that was done or modification to those homes that were recently sold, thus appraised, in the previous 3 to 6 months. This a contingent range on how popular the real estate market in the area.

The information will be compared to existing homes on the market, to see how your home compares to what else buyers are looking on the market. After all, you might not be able to get the same price per square foot at the other if yours is a well-kept home being sold next to a completely remodeled home in Arizona.

Realtors will consider whether it is a buyer’s or seller’s market. You can underprice the home and let the bidding begin. if you want to create a frenzy with a lot of eyes on your property in a seller’s market. The tactic will definitely work in many markets including Arizona.

Do you want to know how much your house in Arizona is really worth? Get a no-obligation cash offer by calling us. We provide a detailed and accurate information about your home value in just minutes

IF YOU ARE LOOKING FOR A FAST WAY TO SELL YOUR HOME IN ARIZONA, GIVE US A CALL AT (310) 658-8252 OR FILL OUT OUR ONLINE FORM TODAY!

cristinano4

Cristina Ortega is the proud owner of Mrs. Property Solutions and have been in the business of helping people with their houses since 2016!

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