How accurate are Zillow estimates for Houston houses? If you’re a local homeowner wanting to know how much your home is worth, you might be wondering if Zillow is a reliable tool to use.
In this post, our team at Your Home Sold Guaranteed Realty - Chris Schmidt Team will discuss how accurate Zillow estimates are, specifically in the Houston area. We’ll also cover whether you should use Zillow at all, or if you’re better off hiring a realtor or appraiser.
Key Takeaways:
- According to Zillow, the error rate for estimates nationwide is 2.4% for on-market homes and 7.49% for off-market homes.
- In Houston specifically, the median error rate is 2.23%, based on data from 30,8000 homes.
- It’s important not to exclusively rely on Zillow Zestimates. As you get ready to list your home on the market, it’s essential to reach out to a realtor.
How Accurate are Zillow Estimates for Houston Houses?
According to Zillow, the error rate for estimates nationwide is 2.4% for on-market homes and 7.49% for off-market homes. Zillow’s estimates can be higher or lower than a home’s actual market value, though they tend to skew higher.
Zillow’s estimates are created using an automated valuation model, which relies on an algorithm to analyze publicly available data and user-generated data on recent sales.
This method has some drawbacks since it can’t take into account the unique circumstances of each individual home that might make it worth more than similar properties in the area. For example, unique property features or recent renovations.
Additionally, housing market trends change often, and it can be challenging for Zestimates to reflect these changes accurately. The Zestimates system is only as accurate as the data available to it. So if a certain area lacks data, the home value estimates are likely to be off.
How Accurate are Zestimates in Houston?
In Houston specifically, the median error rate is 2.23%, based on data from 30,8000 homes. 81.07% of homes that were sold in Houston had a Zillow 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.
Should You Use Zillow or Hire a Realtor?
If you want to know your home’s market value because you plan on selling it, it’s best to only use Zillow Zestimates if you’re early on in the process. Zillow can give you a rough idea of how much your home is worth, which you can use to help you establish an initial budget and prepare for your sale.
However, it’s important not to exclusively rely on Zillow Zestimates. As you get ready to list your home on the market, it’s essential to reach out to a realtor and get a professional estimate of your home’s market value.
Realtors have access to the most up-to-date housing market information and have in-depth knowledge of the Houston housing market. This makes it easy for them to determine how much your home is worth and ensures you avoid the mistake of overpricing.
We Can Help You Determine How Much Your Home is Worth
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 calculate how much your home is worth, and if you decide you want to sell, our unique Guaranteed Sale Program protects your interests and makes the home-selling process risk-free.
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].
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