Sunday, April 1, 2018

Zillow, Redfin, and are put to the test to see which is most accurate at home valuation

Friends, family, and clients frequently tell me "Zillow said my house is worth..."  There are several on-line house valuation services that people go to when they are curious what their home might be worth.  Here are some of the more popular ones:

  1. Zillow
  3. HouseGain
  4. Redfin
  5. Trulia
So how accurate are they?  Well, the results are in!  On 2/21/18 I ran 3 checks on my recent listing at 5518 Dupont in Rincon Valley.  I told the sellers that I thought they'd get over 650,000.  The sellers wanted to list in the 620's.  On 2/23/18 we listed for $629,000.

Here's what 3 online home valuation services indicated for value:

Click on the image to enlarge

Click on the image to enlarge


Click on the image to enlarge

The range is  $629,000 - $634,700.  We listed on 2/21 and 10 days later, we reviewed multiple offers and accepted an offer for 655,000 and allowed the seller to remain in the home for up 2 weeks rent free (what's that worth?).    On 3/26 we closed escrow with no other negotiating needed.  

The lesson is... the sellers received more that $26,000 over, and over $20,000 more than Zillow estimated.  

On 2/27/18 I ran a check on a different listing.  This listing was in Rincon Valley's Skyhawk neighborhood.  5832 Owl Hill Dr.  We listed for $899,000 and went on the market 2/27/17.  I went home and found the following on-line estimates - $760,100

Click on the image to enlarge - $844,696

Click on the image to enlarge

On  3/22 received an offer for $925,000, no inspections, close escrow in 11 days, and seller could remain in possession of the home for up to 90 days FREE (what's that worth?)

So the lesson is quite clear.  On line valuation sites can only use computer mathematics to estimate a homes value.  At best, these values were off over $80,000.  At worse, they were off over $164,000 !

These home valuation sites are fun to check in with, but don't put your buying and selling decisions in the hands of these automated value traps.  Call a professional broker who is familiar with your neighborhood.

I love living in Rincon Valley!  I've lived here since 1995 and can't imagine living in a better north bay community.  Call me today if you're interested in buying a home in Rincon Valley, or if you'd like to list your Rincon Valley home for sale.  

Jim Cheney, Your Rincon Valley Realtor
  • Jim Cheney, Broker
  • Saint Francis Property
  • (707) 494-1055
  • Rincon Valley - Santa Rosa
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