SEPT 2017: How Much Can you Rely on a Zestimate?
Zillow’s rise to fame can largely be attributed to its development of the first “Automated Valuation Model” or “AVM”, referred to as the Zestimate. Millions of homeowners and buyers flocked to the site to see what the Zestimate was for their home, or a home they wanted to buy. It’s quick, easy, fun, and uses several algorithms and indexes to predict the value of real estate.
Today, ten years later, there are several public facing AVM’s and they all share the same distinct disadvantages. They do not physically inspect the home, they rely on public records which are often inaccurate and incomplete. The information is often delayed, as each county courthouse has their own updating procedures. In most cases whether it’s Redfin, Zillow, or your tax assessor, the value estimator is only painting part of the picture.
The National Association of Realtors has created both public facing and private member AVM via Realtor.com and the agent’s membership portal – RPR (Realtors Property Resource). While none of the indexes can be relied upon exclusively or as an average, the RPR has the distinct advantages of incorporating listing and sales data directly from the MLS into its algorithm.
It fills in the blanks of the public records and is updated daily.
At ELEETE Real Estate, we have our proprietary “Price Report” that is assembled by two full-time associates who physically see your home and directly compare it to the hundreds of other homes that they have personally visited. Our in-depth analysis typically has over 100 adjustments based on land value, home size, condition and age, quality and updates, and the number of garage stalls. As a final cross-check, we show our clients how our model lines up against 5 unique AVMs to insure our clients are confident in the value of their home.
If you would like to get a true accurate picture of your value, call your ELEETE Realtor today!