Is Zillow Zestimates higher or lower than an appraisal value in Colorado Springs? Whether you’re buying, selling, or just a homeowner curious about your home’s value, it can be helpful to know which option is better.
In this post, our team at Your Home Sold Guaranteed Realty - Barb Has the Buyers Team will discuss what to consider about Zillow Zestimates vs. professional appraisals.
Key Takeaways:
- Zillow Zestimates can be both higher and lower than a home’s actual appraisal value. But on average, Zillow Zestimates tends to provide higher valuations.
- For home sellers, Zestimates can give you an unrealistic idea of how much your home is worth, causing you to overprice it.
- For home buyers, Zillow’s higher estimates might tempt you into overstretching your budget or pursuing properties that are not realistically priced.
Is Zillow Higher or Lower Than an Appraisal?
What to Know About Zillow Zestimates
Zillow Zestimates can be both higher and lower than a home’s actual appraisal value. But on average, Zillow Zestimates tends to provide higher valuations.
Zillow’s inaccuracies come from the fact that its estimates are created with its automated valuation model. This model is an algorithm that analyzes data like recent sales in the area, tax assessments, and user-generated data.
A significant drawback of this method is that it doesn’t include the impact of off-market homes on local pricing trends. In addition, because valuations are determined by an algorithm, Zestimates can’t account for any unique features, recent renovations, or other characteristics that might make your home worth more than comparable properties in the area.
Zestimates’ ability to provide an accurate home valuation also depends on the availability of data in any particular housing market. As a result, if your market doesn’t have a large data set to work with, your home could be significantly over or undervalued.
Another factor to consider is that housing markets and pricing trends often fluctuate rapidly– sometimes multiple times per week. It can be hard for Zestimates to account for all these changes in an accurate way.
What to Know About Appraisals
Professional home appraisals are conducted by a licensed appraiser. The appraiser will visit the property in person and perform an in-depth analysis where they’ll evaluate:
- The home’s location
- The home’s condition
- The surrounding neighborhood
- Unique features or recent improvements
After inspecting the home, they’ll analyze comparable sales and pricing trends in the local market. Based on all this information, they’ll give your home a highly accurate market valuation.
Home appraisals are usually paid for by a home buyer as part of the buying process. However, anyone can get an appraisal on their home at any time.
Should You Use Zillow or Get an Appraisal?
If You’re Selling
For home sellers, it’s important not to rely on Zillow Zestimates for your home valuation. Zestimates can give you an unrealistic idea of how much your home is worth, causing you to overprice it in the market.
Overpricing your home based on inflated estimates could lead to prolonged listing times and potential buyer skepticism. And the longer your home remains on the market, the less interest it will see from buyers, meaning you might have to significantly lower the asking price.
Instead, reach out to a real estate agent or get a professional appraisal to ensure your pricing strategy is realistic.
If You’re Buying
For home buyers, Zillow’s estimates can serve as a starting point for evaluating properties of interest and seeing what home prices are like in certain areas.
However, it’s essential to view these estimates with caution and do your research. Zillow’s higher estimates might tempt you into overstretching your budget or pursuing properties that are not realistically priced.
To avoid potential disappointment or financial strain, hire an experienced realtor. They can give you an accurate picture of home prices in the area.
Buy or Sell a Home in Colorado Springs with Barb Schlinker
Whether you’re planning to buy or sell or just want to know your property’s value, making informed decisions requires careful consideration and consultation with trusted professionals. At Your Home Sold Guaranteed Realty - Barb Has the Buyers Team, Barb Schlinker and our entire team have been in the real estate business for 27 years.
After all this time in the industry, we’re deeply familiar with home prices in the Colorado Springs metropolitan area and constantly monitor pricing trends. This makes us well-equipped to find the market valuation for any property.
Plus, we offer unique buyer and seller guarantees that make working with us risk-free. To learn more about working with us or getting a home valuation, call 719-301-1802 or fill out the form on this page.
To Discuss Your Home Sale or Purchase, Call or Text Today and Start Packing!
