Why Zillow Shouldn't Be the Place to Get Your Home's Value

San Francisco Real Estate Podcast with Durwin Cheung

Are you looking to determine the true value of your home? Don’t trust Zillow to do that for you.

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Everyone knows what Zillow is; it gets millions of clicks every day. Everyone goes there to figure out how much their property is worth or to look for houses, but there’s a problem with that. Those home values aren’t always good. Their estimates are based on tax records or recent properties that have sold, and that information could already be dated and therefore inaccurate.
One of the things that Zillow will never know is the exact condition of a home. Zillow doesn’t know if you’ve updated the kitchen or the bathroom, or if the inside has been remodeled, and won’t be able to count for that value. They only base the value on the tax records and square footage.
So let’s say both you and your neighbor’s houses are 2,000 square feet, but your house has been updated on the inside and your neighbor’s has not. Since Zillow hasn’t seen the inside, you may see the same value for both houses, even though yours should be valued at a higher price.
Additionally, the estimates are inaccurate because Zillow uses old data that may be lagging behind by three to six months. The estimate tool on Zillow is more of a starting point. It gives you an idea of what your home might be worth but ultimately, you have to talk to your Realtor to get your home’s true value.

The estimate tool on Zillow is more of a starting point.

Have your Realtor go out and compare properties that are on the market now, not look at stuff that was sold three months ago. Have your agent talk to you about what’s selling right now. Zillow will never know what the price is in this current market.
If you don’t believe me, do a little bit of a research. In fact, there’s a woman in Illinois suing Zillow over their estimate feature, and people are jumping on this thing. It’s turning into a class action lawsuit because of how inaccurate this estimate feature really is. Sit down and talk with your Realtor so that you can be sure that the value you get for your home is correct.
If you have any other questions about this topic or you’re looking to buy or sell a home, give me a call. I’d be happy to help!