How accurate is Zillow?

Q: "I have a confession. I am addicted to looking at property values on Zillow.com. I watch my own property value go up and down, and although it makes me nuts, I keep checking. How accurate are the Zestimates?"

A: There are many websites out there that are estimating property values and each one needs to be taken with a grain of salt. Zestimates (the property value stated by Zillow) are all over the place. We have seen them come within 5% of the sales price and other times we have known them to be off by over 20%. They rely upon data from your town’s tax assessor’s database and also upon recent sales data. The problems are many. They have no way of accurately assessing the condition of the property or of taking into account location attributes. When you call up a property, the list of comparable recent sales almost always includes properties that have nothing in common with the subject. A perfect example of this flaw is evident when you search a waterfront property on the outer Cape. You will see comparable sales listed that may only be a half mile from the subject but are light years away in terms of value, yet they are being figured into the equation.

The best way to determine the value of your property is still the human way. Hire a Certified Appraiser to do an appraisal of your property. This can cost a few hundred dollars and will provide you with the definitive value of your property. Or, ask your Real Estate Broker to provide you with an opinion of value and a Comparative Market Analysis. In preparing a CMA for you, we visit the property to assess the condition and attributes, and we do a careful comparison of your property with similar properties that have recently sold to come up with our best assessment of your value.

If you are interested in receiving a complimentary CMA, please contact us at 508-487-2430. info@provincetownrealestatenow.com.