Have you ever been curious on what your home is worth if you sold it on the open market today? If so, you have probably asked yourself how accurate the estimate on Zillow in Cincinnati.
In today’s internet savvy world, many look to industry leader Zillow for information. But the questions is, “How Accurate Is The Estimate On Zillow in Cincinnati Ohio?
Well the answer most experienced professionals will give you is. Don’t trust Zillow for valuing your home. Here is a few reasons why.
How Accurate Is The Estimate On Zillow in Cincinnati Ohio?
Zillow’s Has A Pretty Large Margin Of Error
The data shows that Zillow is averaging around 18-20 percent higher or lower margins on home values. There is even stats that show Zillows home values in Cincinnati Ohio were increasing while the market was decreasing. That is definitely not a good sign.
Let’s think about this for a second. For a $200,000 home, a 20 percent deviation is $40,000. For higher-priced markets like Los Angeles or Miami, a $1 million home could see unrealistic estimations varying from $180,000 to $200,000 or more. That’s a huge difference in pricing.
Sometimes Zillow estimates can give potential buyers the wrong idea and make them believe a homes price range is way out of their budget when in reality it is right in the budget price they are looking for. Causing homes not to sell as quickly as they should. Also, the consequences of error with Zillows estimates has caused many disagreements between real estate agents and sellers on what the home is worth, and how they should price it.
Simply put: Homeowners see the price on Zillow and think that is what they should be receiving for their home. Rather it is way to high, or even worse, way to low.
So How Does Zillow Come Up With Their Estimates anyways?
Zillow calls its proprietary estimating tool a “Zestimate.” Even with all the pricing factors placed into the formula, there is still a high margin of error because Zillow isn’t actually looking at your home.
The proprietary formula looks at the market pricing in the area. It will factor in the size of the house, the lot and all features of the home including the number of bedrooms, bathrooms, pools and highlighted features. However, even Zillow will say this is a starting point for a true valuation of your home and should not be considered an appraisal or true value.
Zillow gets this information by relying on public record and user imput such as recent sales. However, Zillow can not discern if your home is in bad condition or completely remodeled. Which obviously can change the price by a good amount.
Additionally, Zillow doesn’t discern community pockets. These are very common in larger cities where you can have higher end community just blocks from a mid or lower-end one. These “pockets” can skew or be skewed by larger metro data that Zillow factors in that aren’t pertinent. Which answers the question, How Accurate Is The Estimate On Zillow in Cincinnati?
The Better and More Accurate Model
Any professional realtor will tell you that pricing a home to sell requires a full understanding of the home itself, the location and current market trends in that area. In fact, most realtors look at Zillow pricing with a bit of a frown because it does make pricing and managing realistic client expectation more difficult.
Real estate agents and Real Estate Investors can accurately tell what price range your area will sell at based on the comparables that have sold recently in your area. Comparables are homes that are most similar to yours that are around you.
An agent or investor will take a look at those sales in your area, creating a radius based on your pocket rather than an entire zip code. He will then compare your home based on size, features, and upgrades to those homes that were recently sold, thus appraised, in the previous 3 to 6 months. This range is contingent on how hot the real estate market is in the area.
He will then compare this information to existing homes on the market, looking at how your home compares to what else buyers are seeing on the market. After all, if yours is a well-kept home being sold next to a completely remodeled home, you might not be able to get the same price per square foot at the other.
In the Cincinnati Tri-state, you find the question of how accurate is Zillow on my home estimate in Cincinnati Ohio coming from the homeowners that are needing to sell their home or thinking about selling. If that is you, then finding out what your home is worth by contacting a local realtor here in Cincinnati. On the other hand, if your one of the multitudes of people that do not want to list your home and want to sell your house as is and not worry about any of the repairs or fees. We here at Fit4you Homebuyers can be of good service to you. We buy houses all around the cincinnati area and we pay a top dollar cash price. We can buy your home in as little as 7 days.
I would love to make you an offer to purchase you house. For more information about what we do you can check out our offer formula here.
Are you ready to sell your house fast today in Cincinnati?