AIAIIf you are considering selling your home or are just curious about its current value, Zillow offers an easy-to-use tool called the “Zestimate”. The Zestimate provides an estimated market value for millions of homes across the United States. In this article, we will explore what a Zestimate is, how it’s calculated, and how you can use it to estimate your home’s worth.
1. Understanding Zestimate
The Zestimate is Zillow’s estimated market value for a home, calculated using a proprietary formula. It is not an official appraisal but rather a starting point in determining a home’s value. The Zestimate is automatically computed daily for more than 100 million homes nationwide.
2. How is the Zestimate Calculated?
Zillow uses a sophisticated and proprietary algorithm that incorporates data from county and tax assessor records, and direct feeds from multiple listing services and brokerages. Here are some of the factors that go into the calculation of a Zestimate:
- Physical Attributes: This includes data about a home, such as square footage, number of bedrooms or bathrooms, location, lot size, and more.
- Tax Assessments: Zillow incorporates data from tax assessments into its calculations.
- Prior and Current Transactions: Prior sale prices and current listing price (if the home is on the market) can also influence the Zestimate.
- Comparable Homes: The sale prices of similar homes in the same area recently sold also influence the Zestimate.
3. How Accurate is Zestimate?
It’s essential to note that while the Zestimate is a useful tool, it isn’t always 100% accurate. According to Zillow, the median error rate of the Zestimate for on-market homes is about 1.9%. For off-market homes, the median error is higher, at approximately 7.5%.
4. How to Find Your Home’s Zestimate
Finding your home’s Zestimate is straightforward:
- Visit Zillow’s Website: Navigate to www.zillow.com.
- Enter Your Address: Type your home’s address into the search bar and hit “Enter”.
- View Your Home’s Zestimate: On the next page, you should see your home’s Zestimate near the top of the page.
5. Updating Your Home’s Details on Zillow
If the information Zillow has about your home is outdated or incorrect, you can update it, which may affect your Zestimate. You can claim your home on Zillow and update its facts, such as the number of bedrooms or bathrooms, the square footage, or any home improvements you’ve made.
The Zestimate is a valuable tool for homeowners, buyers, and sellers, providing an estimated market value for homes based on a range of data. However, while it can give you a general idea of your home’s worth, it’s not a substitute for a professional appraisal or the advice of a real estate professional.
Please refer to the most current Zillow guidelines and tools when evaluating your home’s worth.