Navigating the real estate market can be daunting whether you're buying your first home or preparing to sell your fifth. Amidst the multitude of available tools and platforms, Zillow remains a key player in the quest for the perfect home. Yet, for all its user-friendly design and tantalizing listings, the question remains—how reliable is Zillow for the average consumer?
One of the most well-known aspects of Zillow is the Zestimate—an algorithm that provides an estimate of a home's worth. For many, the Zestimate is the initial benchmark for home value. However, its accuracy has been the subject of numerous debates.
By Zillow's own admission, the Zestimate has a median error rate of 7.49% for off-market homes. To put that into context, the median error rate on a $500,000 home would be nearly $38,000!
This means sellers who rely on the Zestimate to price their home could be setting themselves up for heartbreak—not only could they lose tens of thousands due to underpricing, but overpricing by the same amount can torpedo their chances at selling.
Once a home is listed on Zillow, the Zestimate often changes—at this point, Zillow claims the median error rate falls to 2.4%. This makes sense considering they now have the list price to take into consideration!
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A Zillow Premier Agent is a real estate professional who pays Zillow for leads and features—NOT an employee of Zillow. They can work for any brokerage, have any amount of experience, be a part-time agent, etc.
The common thread between all Zillow Premier Agents is that they pay for leads. When you request information about a property, multiple premier agents are alerted and given your contact info. Since these agents know they are not the only ones who were sent your info, they will reach out quickly (and frequently) to try to win your business. This process often leaves buyers wondering: is Zillow trustworthy?
A Zillow Premier Agent reaching out to you doesn't mean they're the best agent for the job—it only means that they've paid Zillow for your information. These agents may or may not have further information on the house you inquired about or the area it's in. With this in mind, it's best to do your research and find an agent that you trust. You can still use Zillow to peruse listings, and then reach out to your agent instead of submitting your information.
The vast majority of homes and properties have at least some information on Zillow, regardless of if they're for sale or not. While some statuses may seem self-explanatory, savvy buyers and sellers can read further into certain statuses to give themselves a leg up.
Zillow's greatest strengths lay in its ease of access and its vast database of properties. It's a tool that anyone can access and provides information in a digestible way.
Despite its appeal and reach, Zillow is not infallible. The platform has its flaws and limitations that savvy consumers should be aware of before making any major real estate moves.
Zillow is an influential platform that has changed the way many people approach the real estate market. By understanding its nuances and limitations, consumers can use this tool effectively as part of a larger strategy. In the end, the human element remains indispensable in the realm of real estate—and Zillow, influential as it may be, is no exception.