How Much Can You Trust Zestimates?

Luxury Miami RealtorSo, Zillow has changed the real estate world for buyers, sellers and realtors. A day does not go by that a client doesn’t say, “Well, Zillow said my home was worth this” or “that house is priced too high because Zillow said it was much lower”. It has been a great tool for buyers to gain knowledge of the market, but most realtors cringe when they hear that someone wants to value their house or is determining value on a potential purchase based on a “Zestimate”. It only makes sense, right? How can Zillow truly value a property without being in it and determining finishes and special features. We all know price per square foot is just a way to gauge price, but, as a realtor, when we price a home, we take into account much more than the size of the house, number of bedrooms and bathrooms and lot size. This past week CBS’s Norah O’Donnell asked the CEO of Zillow, Spencer Rascoff, about Zestimates and their accuracy. He said they have a “median error rate” of about 8 percent. Kenneth Harney wrote an article that was in the Miami Herald bringing light to just how far off these Zestimates can be and, while 8% might be the national median, it seems they can be much further off in different areas. He reports that some places in California are off as high as 26% and Somerset County,Maryland has an error rate of an alarming 42%. In the next few days I am going to do a local study and will report back what I find in Coral Gables, Coconut Grove and Pinecrest. Rascoff did say in his interview that Zillow should be considered “a good starting point”, but insinuated it should not be the last word. We all must remember this, it is just a starting point!! For information on new listings or if you are looking to list your home, please call me directly at 305.798.8685 or visit my website: Luxury Miami Real Estate.

Luxury Miami Real Estate

My focused dedication as a realtor in my home town of Miami for over 20 years, consistently puts me at the top of my field. Whether you’re looking to buy or sell your home, let me help you from start to finish with my results-proven: professional marketing, excellent property exposure and comprehensive experience.

As the #7 Realtor company-wide at EWM in 2014, my focus is on Coral Gables, Coconut Grove, Pinecrest and South Miami — specializing in luxury real estate and waterfront properties. Call me today and let’s get started!

Don’t hesitate to reach out to me, Ashley Cusack at {305.798.8685, email and website}. EWM Realtors.

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