It is no secret that many home buyers and sellers are using online tool to search and find about home values. it’s a very helpful tool, but the home value figures can be misleading and people shouldn’t etch that number in stone when it comes to making an offer or pricing your home.
Zillow hired a team of statisticians and tech gurus to come up algorithms that analyze data to identify relationships within a specific geographic area, between the home-related data and actual sales prices. It takes considerations on bigger location, lot size, square footage, number of bedrooms and bathrooms, however it does count the following facts -
1) The smaller scope of location, such as whether it's a quiet corner unit or a road side unit.
2) Renovations and upgrades. For instance, one unit has kitchen and bath and floor all updated, and the other has 3 dogs with worn carpet and walls with holes.
3) Special designs.
Overall, an algorithm is just an algorithm, it lacks human judgement like a home appraiser does. Zestimate tends to be more accurate in neighborhoods with frequent turnover, which provides a constant stream of information about home sales.
So, you could use zestimate as a general guidance, but not a bible, more accuracy shall be obtained from
Zillow hired a team of statisticians and tech gurus to come up algorithms that analyze data to identify relationships within a specific geographic area, between the home-related data and actual sales prices. It takes considerations on bigger location, lot size, square footage, number of bedrooms and bathrooms, however it does count the following facts -
1) The smaller scope of location, such as whether it's a quiet corner unit or a road side unit.
2) Renovations and upgrades. For instance, one unit has kitchen and bath and floor all updated, and the other has 3 dogs with worn carpet and walls with holes.
3) Special designs.
Overall, an algorithm is just an algorithm, it lacks human judgement like a home appraiser does. Zestimate tends to be more accurate in neighborhoods with frequent turnover, which provides a constant stream of information about home sales.
So, you could use zestimate as a general guidance, but not a bible, more accuracy shall be obtained from
- Getting a comparative market analysis (CMA) from a real estate agent
- Getting an appraisal from a professional appraiser
- Visiting the house (whenever possible)”
No comments:
Post a Comment