By Eagle Home Appraisal Birmingham
Published · Updated
What Is a Zestimate?
Zillow’s “Zestimate” is an automated estimate of a home’s market value, calculated using public and user-submitted data, including recent sales, tax assessments, and property features. It is not an official appraisal and should be considered a starting point for understanding a home’s value, not a definitive figure.
Data and location matter
Relevant recent sales can provide more information for an estimate. Sparse data, unusual properties or incomplete records can limit how useful the result is.
Listed and unlisted properties
A recent listing may supply property details that are missing from older records. Check the actual information used rather than assuming listing status determines accuracy.
Why Zestimates Can Miss the Mark
- Recent sales data: Limited comparable information can make a property harder to evaluate.
- Unique features: Custom or luxury homes, or those with unique locations (e.g., mountain views), are harder to value accurately by algorithm.
- Condition and upgrades: An automated estimate may not reflect current condition or recent renovations when those details are absent from its available data.
How Does Zillow Compare to a Professional Appraisal?
- Automated estimate: Uses available data and a model to produce an estimate. It does not explain the same assignment scope as a commissioned appraisal.
- Professional appraisal: Develops a value opinion for a defined purpose and date, with analysis of property information and market evidence. Ask about the scope and intended users.
Using an estimate
Check the property facts and date behind any estimate. A published average or median error statistic does not guarantee accuracy for a particular home. If the result will support a loan, estate, divorce or other formal use, confirm the intended recipient’s requirements.
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