Are Zillow Zestimates close to appraisal value? Many home buyers and sellers use Zillow throughout their real estate experience. But how accurate is Zillow? Is a home’s value on Zillow close to its appraised value as determined by a professional appraiser?
In this post, our Houston real estate experts at Your Home Sold Guaranteed Realty - Chris Schmidt Team will discuss the difference between Zestimates and appraisal value, and which one you should use.
Key Takeaways:
- No, Zillow Zestimates are not typically considered close to appraisal values. Instead, Zestimates are intended to represent a home’s market value based on current market conditions.
- While Zestimates can provide a rough estimate of a property’s market value, they are not as accurate or comprehensive as a professional real estate appraisal conducted by a licensed appraiser.
- In Houston specifically, the median error rate for Zestimates is 2.23%, based on data from 30,8000 homes. 81.07% of homes that were sold in Houston had a Zestimate that came within five percent of the final sale price.
Are Zillow Zestimates Close to Appraisal Value?
No, Zillow Zestimates are not typically considered close to appraisal values. Instead, Zestimates are intended to represent a home’s market value based on current market conditions.
So, what’s the difference between appraised value and market value? Appraised value can only be determined by a professional appraiser, and it’s based on a more in-depth analysis of current market conditions, comparable sales, and the home itself.
Market value, on the other hand, is the amount a buyer is willing to pay and a seller is willing to accept in the current market. It may or may not align with appraised value, and is determined by a realtor analyzing comparable sales.
Zillow Zestimates more closely align with market value, but they’re not as accurate compared to a realtor. That’s because they rely on an algorithm that analyzes publicly available data on recent sales.
However, the algorithm can’t take into account the unique characteristics and features of your home that impact what buyers would be willing to pay for it.
Should You Use Zillow or Hire an Appraiser?
While Zestimates can provide a rough estimate of a property’s market value, they are not as accurate or comprehensive as a professional real estate appraisal conducted by a licensed appraiser.
Appraisals are more detailed and take into account a wider range of factors than Zestimates. As a result, Zillow Zestimates can differ significantly from the actual appraisal value of a property.
Generally, Zestimates are best used as a starting point for understanding general market trends and property values in a particular area. But to determine your home’s exact worth an appraisal can be a good idea, though it isn’t required.
Appraisals are typically ordered by the buyer’s lender as part of the mortgage process. But sellers can hire an appraiser as well.
How Accurate are Zestimates in Houston?
In Houston specifically, the median error rate of Zillow Zestimates is 2.23%, based on data from 30,8000 homes. 81.07% of homes that were sold in Houston had a Zestimate that came within five percent of the final sale price.
94.35% of homes came within ten percent of the final sale price, and 98.40% of homes came within twenty percent of the final sale price.
In Texas more broadly, Zillow has a median error rate of 2.26%, based on data from 129,9000 homes.
Discover Your Home’s Market Value in Houston with Chris Schmidt
Whether you’re buying or selling a house, working with a Houston realtor is essential for determining a property’s market value. At Your Home Sold Guaranteed Realty - Chris Schmidt Team Chris Schmidt and our team have years of experience working in the Houston metropolitan area.
Our familiarity with the local market trends, as well as our legendary customer service, are why we’ve developed a reputation as the best realtor in Houston. We can easily help you determine the market value of a home in Houston, whether you’re buying, selling, or are a current homeowner.
To learn more about working with our team, give us a call at 713-322-5604. You can also fill out the form on this page or send a message to [javascript protected email address].
To Discuss Your Home Sale or Purchase, Call or Text Today and Start Packing!
