How Far Off is Zillow?
1:17 Minute Read.
The answer is 7.852%.
Zillow’s algorithms have over-inflated West Michigan properties values by an average of 7.852%. And that’s not all. Next time sellers start talking about their home’s Zestimate, please tell them two things from me: Research conducted in West Michigan confirms your Zillow valuation is over-valued and secondly, homes listed at the Zillow Zestimate take nearly twice as long to close.
How do I know?
“Being good at real estate means bringing relevant facts to the table.”
A few months ago I wrote a post on how to use Zillow in your listing presentations. Read it here. Like you, I sensed Zillow values were too high but without scientific research I didn’t have the hard facts. So, that day I started an experiment. I printed off the MLS sheets of several new listings from all over West Michigan representing homes at several price points. I wrote down the Zestimate of each listing. Once the property closed, I compared the actual closing value to it’s original Zillow valuation. That’s how I reached my conclusion. It’s a simple experiment any agent could do.
I’ve waited months to share this information. That’s when I learned the second fact. Each week I checked to see which of my sample properties were removed from the market. Many of those listed at or above their Zestimate took almost twice as long to sell and close. And some are still waiting. In this business, time is money. Those clients hung onto bad information and unfortunately, they will pay dearly in extra months of mortgage interest payments and daily tax prorations.
I’m not complaining about Zillow. It’s a part of my listing presentation. I like to refer to it. But I don’t trust it. And my clients know that. I’ve talked to agents around the country and it’s different everywhere. In other places the valuation is too low. Sometimes, it’s just right. In my experience, here in West Michigan it’s just over-inflated...and over-rated.
On another note…
Many agents have taken advantage of our new promotion. We are reimbursing agents for the cost of yard signs when they switch to Best Homes of Michigan. With the new sign law taking effect on January 1st, most agents will need to buy new signs anyway. Why not get new signs with our pretty logo on it…for free? And besides, can you find a better brokerage deal in West Michigan?
See who is joining our company…