Is Zillow a good way to find the value of your home?

In today’s world consumers look to the internet to begin gathering information they may be looking for, whether it be health issues, consumer reports, or the current value of their home, or for that matter what their neighbors home sold for. Zillow has become a popular sight among consumers to check out local real estate values. While Zillow helps to satisfy the neighborly curiosity of what other homes sold for in the neighborhood, I have to say it may not be the most accurate way to figure out the value of a home for the purposes of selling or buying. Zillow gathers its information by tapping into county records by using a special computer program, it locates homes that are similar in size and sold price to compare to the subject property (the one you are trying to find a value on.) It also pulls data from recent tax records and recent listing information. One would think that this all sounds like it would value your home properly. The fact of the matter is, Zillow does not take into account special features of your home (finishes, or the fact that you back to open space and your neighbor across the street doesn’t, or neighborhood boundaries, or condition.) The other things Zillow cannot pick up on are special concessions on a sale that may affect the price of the sold next door. (Concessions being seller paid closing costs or down payment assistance. Often prices are inflated to build these in.)

Realtors have been fighting the whole idea of Zillow since it came out, mostly because we are seeing how it is affecting consumers in the market place. I feel the need to say something to my clients and the general public if they are using these values to either buy or sell real estate. If they are selling they could be over pricing their home or under pricing their home by 10%, Zillow states on their website that is the margin of error for Denver Metro area. Same goes for buyers it could work to their advantage and they could get a steal on a home, but they could also miss out on the home of their dreams by believing they are overpaying for it. Nothing can take the place of a CMA (Competitive Market Analysis performed by a licensed REALTOR, or an appraisal done by an actual human person that comes to your home, (not a computer generated one from yet another program), to put an accurate current market value on your home.

If you would like a free no obligation competitive market analysis done on your home, feel free to visit our website at www.ColoradoSuccessTeam.com and click the picture below find your homes value at the top of the page. Or feel free to email us at www.cosmithteam@kw.com.

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