We have changed the way we look at property over the last decade or so. From dealing exclusively face to face, we now do a massive amount of our real estate transacting online. It’s where most people begin to look when considering their first move if they are buying or selling a home.
And Zillow has risen farther than most with the advent of the internet. For many it is the go-to place for real estate information. So, somebody should be asking the question is Zillow accurate? If people rely on what they are told by this website, then the accuracy of the information held on Zillow becomes critical.
Take the human out of the process
I have heard people quote the Zestimate – the Zillow automated valuation model – as gospel. They think that a computer algorithm is the ideal way of giving a precise valuation of a property. After all, it takes human emotion out of it. What if you real estate agent was having a dreadful day when they appraised a property? Will that reflect badly on the valuation they come up with? The theory goes that the Zillow model doesn’t have a dreadful day that it can take the human emotion out of the equation.
And that’s why it isn’t accurate.
If every home was easily assessed by a model then we would have had one far before the advent of the internet.
The emotion is a massive part of the buying decision. That’s why quality home staging companies can be worth their weight in gold. They change the perception of a home, make it more saleable and make it worth more in the eyes of the potential buyer. The algorithm doesn’t take into account a recently remodelled kitchen or a mold problem – how could it?
What does this mean for the investor?
It can mean two things –
- There are some misinformed sellers out there
- You need better information
The property investor that relies on a tool as blunt as a Zestimate is going to find problems at some stage of their career. The latest research shows that over half the time, a Zillow estimate will be more than 5% out. This is a scary statistic. It means that you often wind up going into a purchase situation feeling blind. What is the right price?
So, you need more ammo. You need a tool that isn’t as blunt as a Zestimate – you need Zilculator. It takes the information out there and transforms it into something you can work with. Zilculator puts the meat on the bone where Zillow fails. Rather than just show you a number and expect you to believe it, Zilculator takes you deep.
You can see a real estate analysis that will give you the lowdown on any property. It takes the Zillow Zestimate and then refines it. You can get to the bottom of what the true value of a property is. So you get to evaluate your property purchases properly and make all the right purchase decisions.