The Drawbacks of Using Zillow

While I have nothing against Zillow, there are a few problems with their Zestimate tool and the data they offer on homes listed on the market that you need to be aware of.

Want to Buy a Home? Search All Homes
Want to Sell a Home? Get a Home Value Report

Whether you’re a buyer or a seller, there are a couple drawbacks to using Zillow and their Zestimates that you need to be aware of.

First, I want to say that I’m not against Zillow. Their website is easy to use (I use it myself) and it does provide a lot of value for a lot of people out there. Their most valuable tool is their agent-finder tool. They’re in the business of working with agents and collecting reviews on those agents from consumers who’ve worked with them. If you want to learn more about the Anderson Group and the value we provide to our clients, I invite you to go on Zillow, use this agent-finding tool, and read our reviews.

Now, what is a Zestimate exactly? A Zestimate is an automated valuation tool you can use to get an estimation of a home’s worth. It gives a home’s valuation by compiling data of other comparable homes. There are a couple problems with this tool, though.

If you’re a seller in our Southwestern Idaho area, the first problem is the lack of data. Also, the owners of homes that are on Zillow can edit and update their own home’s information, so the data that Zillow does have regarding homes that are comparable to yours may be false.

Secondly, our area doesn’t have the number of home sales necessary to allow a valuation in a fully automated fashion. It requires hundreds and hundreds of homes to be able to remove the personal element and expertise out of the valuation process and calculate an accurate number for your home.

In fact, Zillow has their own disclaimer that states that their Zestimates are only typically within 15% to 20% of your home’s true value. That disparity can be worth as much as $80,000, so that’s not a valuation anyone can really trust. This is why you need the eyes and experience of a professional agent to help you figure out what your home is worth.

“

You need the eyes and experience of a professional agent to help you figure out what your home is worth.

”

In the meantime, if you want to use a home search website that’s updated in real time and connected to the MLS, head over to our site www.idahofallspropertysearch.com.

The fact that the data on Zillow isn’t current is an especially big challenge for buyers. Oftentimes, Zillow’s data is two or three days old. If you’re a buyer looking in the $175,000 range, many of those houses are sold within 48 hours of hitting the market.
 
If you’re trying to search and buy a home on your own, you’re typically at a disadvantage anyway, which is why it’s critically important that you work with a professional agent. In your case, work with an agent who’s experienced, who will go to bat for you, and works exclusively with buyers.

Don’t Miss Out on this Great Opportunity in Our Market

Certain conditions have created a great opportunity for home sellers in our market. Here’s how you can take advantage.

Want to sell your home? Get a FREE home value report
Want to buy a home? Search all homes for sale

Something amazing is happening in our Eastern Idaho market right now.

If you look across the board, we only have 1.5 months of inventory, which means there is a shortage of homes available. Some price ranges are even below a one-month supply. Any time a market has an inventory of less than five months, it’s considered a seller’s market.

This lack of inventory isn’t surprising for most people, but the cool thing is that in our area, it’s still a buyer’s market above $300,000. In that range, there’s still an excess of inventory, so buyers can still get a pretty decent deal there.

"The best way to take advantage of a market is to sell a house in a seller’s market and then buy a house in a buyer’s market."

What does this mean? If you’re transacting on both the buyer and seller side in the same market conditions, it doesn’t matter if it’s a buyer’s or seller’s market. Everything is a wash. If you take a hit on one side, you can make it back up on the other side, and vice versa.

The best way to take advantage of a market is to sell a house in a seller’s market and then buy a house in a buyer’s market, and that opportunity exists right now in Bonneville, Jefferson, and Bingham counties. If you list a home that’s under $300,000, you’re listing that home in a seller’s market, which means you’ll be able to sell it quickly and for top dollar. After that, you can look in the price range above $300,000 and take advantage of the conditions there.

If this opportunity sounds like something you’d be interested in or you have any other questions about our current market, don’t hesitate to reach out to my team. We’d love to help you.