Last week I wrote about that crazy Zestimate. The zestimate, is a calculation that can be found on the Zillow website that is an estimate as to how much a home is worth. There is a margin of error for every city and in some cases that margin is a big one. According to Zillow 37.5% of the Zestimates of properties in Minneapolis and Saint Paul are within 5% of the actual sale price.
Sellers may actually be better off if the “zestimate” is less than the listing price as opposed to more than the listing price. When buyers see the price of the home and it is more than they want to pay and the zestimate is even higher they probably won’t make an offer. If the zestimate is lower than the asking price the buyers may see that as the value of the house and make an offer based on the zestimate.
When buyers offer less we can usually negotiate the offer up. In fact I just love to negotiate so bring it on. If buyers don’t make any offer at all there is nothing to negotiate. If your home is on the market and you are serious about selling you want an offer. Don’t be afraid of a low Zillow Zestimate. It should help you sell your home for more.
There are a lot of people who believe in the Zestimate. It is a good idea to know what the Zestimate for your home is. There isn’t any point in trying to suppress the information if it isn’t what you were hoping for because buyers and even your neighbors will look it up. My own home is missing about 400 square feet on Zillow of above ground finished living space which means the zestimate is lower than the actual value. If I were to put it on the market today I would list it for about 60K more than the “Zestimated” value.
If you would like to know how much a Realtor® thinks your home is worth. Call or write and I’ll send you out information about what the public records show and I’ll do my own analysis. Free of charge of course unless you want to pay me.