Unfortunately many homeowners today rely on Zillow's Zestimate tool to give them an estimate of their home's value. Zillow's Zestimate may not be as accurate as they think, especially in the volatile California real estate market. Tracy CA and Mountain House CA home listing prices and home sales are largely affected by complex real estate market trends, with their close proximity to the Bay Area.
According to The Wall Street Journal, Zillow’s Zestimate tool utilizes a home's sales price, sales history, tax assessments, and square footage. Their tool includes a value based on comparable homes.
Although Zestimate may provide an accurate home value for some homes, it may be off by a large amount for other homes. Past sales history isn't always a reliable predictor of a home's value. The real estate market can be very volatile as we saw with the housing boom (economic bubble) of 2000 and it's subsequent bust a few years later. Tax assessments may be inaccurate as some homes may not have been assessed in years. The Zestimate also doesn't take into account all of the housing features and upgrades for each home, such as a recent kitchen remodel.
Bill Garber, a spokesman for the Appraisal Institute, the main trade group for U.S. property appraisers, said that Zestimates, like most automated valuation models, or AVMs, are not used by appraisers as a benchmark because they are based on public information and information from local multiple-listing services that is often inaccurate...Zestimates are a form of AVM … AVMs have limitations, the biggest being the lack of inspection and oversight of any improvements. Complex markets render them nearly useless. They’re basically an aggregation of public records data, and public records are riddled with errors,” Mr. Garber wrote in an email. “Some AVMs are now intermixing MLS information, which is also filled with incorrect information. Garbage in, garbage out.” Source: Wall Street Journal
Your home may be undervalued. If you're on the fence about selling, we can help. We offer a no obligation, free home value estimate. Our comprehensive home estimate takes into account many factors including location, comparable home values and home features.
Call The Aguilera Real Estate Team (Keller Williams) today at 209-597-8256 or click here to get your free emailed home value estimate!
Is Your Zillow Zestimate Wrong? Your Home May Be Undervalued - Aguilera Real Estate Team Tracy California Real Estate
Lisa Aguilera
The Aguilera Real Estate Team
Cell: 209-814-8256 | Office: 209-597-8256 |Fax: 209-496-9319 | BRE # 01766690
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Disclaimer: The information provided on this website should not be constituted as legal advice. The content is intended to provide general information about real estate, short sale and foreclosure processes, and should not be acted upon without the counsel of a qualified REALTOR®, attorney, and tax expert.
