You shouldn’t trust a Zestimate to accurately value your home, but you can trust it to accurately gauge the market’s movement over time.
When it comes to calculating a home’s value, Zestimates aren’t very accurate—they don’t know sale prices, and they’ve never actually been inside your house, so they can’t know what it looks like.
What Zestimates are good for, however, is gauging the market, because their algorithm can account for the movement of certain numbers, such as homes’ average price per square foot.
For example, let’s say a Zestimate claims your home is worth $250,000 one day, then six months down the road, says it’s worth $255,000. While that probably isn’t what your home is really worth, it’s a good indicator that there’s been some movement in the market overall.
What Zestimates are good for, however, is gauging the market, because their algorithm can account for the movement of certain numbers, such as homes’ average price per square foot.
For example, let’s say a Zestimate claims your home is worth $250,000 one day, then six months down the road, says it’s worth $255,000. While that probably isn’t what your home is really worth, it’s a good indicator that there’s been some movement in the market overall.
“
It’s fine to use Zestimates as a baseline
for where our market is, but don’t rely on it
as an accurate valuation of your home.
”
for where our market is, but don’t rely on it
as an accurate valuation of your home.
The bottom line is this: It’s fine to use Zestimates as a baseline for where our market is, but don’t rely on it as an accurate valuation of your home. Your home is only worth what you’re willing to sell it for and what someone is willing to pay for it.
If you have any questions about this or any other real estate topic, don’t hesitate to reach out to us. We’d be happy to help you.
P.S. Don’t forget to mark your calendars for May 10, because we’ll be giving away a $150 gift certificate to Albuquerque Uptown just in time for Mother’s Day. All you have to do to enter your name into the drawing is to give us a call at (505) 448-8888.
