Zillow Facing Lawsuit over ‘Zestimate’

    Here at the Kevin Allen Jones Home Team, we frequently get the question, “Why do I need an agent to give me a home valuation when I can just get one from Zillow?”

    According to the Washington Post, Zillow is now facing a lawsuit because they are largely underestimating home values, thus “creating tremendous road blocks” for home sales.  Zillow is notorious for giving low home valuations, with a median error rate of a very high 8%. Why?

    The reason is simple.  Zillow does not know what additions you have made to your house and does not study local real estate trends in your neighborhood or town, regularly undervaluing homes by tens of thousands of dollars.  Your ‘Zestimate’ is merely a computer-generated value based on an algorithm.

    Because of this, your Zestimate, depending on the true market value of your home, could be priced $40,000 under market value or more!  That is a lot of money when you’re trying to sell your home.  What if you are selling your home and your buyer refuses to pay any more money than what the Zestimate generates? Another problem with the ‘Zestimate’ is that, “a seller might demand to know from potential listing brokers why they say a property should sell for just $595,000 when Zillow has it at $685,000.”  The consequence?  Your home sits on the market and doesn’t sell because it was priced too high.

    The solution?  In order to get a correct and accurate valuation for your home, you must start by working with a local authority who knows the market and local housing trends – a real estate agent.  That’s where we step in.  The Kevin Allen Jones Home Team knows the Houston market and is ready and willing to give you an accurate valuation for your home.

    To start, click here to get an initial valuation.  After this, we will contact you to get more information about your home so that you can get the most accurate valuation possible.  And if you ever have any questions at all, feel free to ask!  We are always available!

    Want to read the articles mentioned in this post? Click on the links below:

    How accurate is Zillow’s Zestimate?

    Zillow faces lawsuit over Zestimate tool

    Inaccurate Zillow ‘Zestimates’ a source of conflict over home prices

     

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