As a real estate professional with multiple decades in the business, few things enrage me more than an inaccurate estimate of the value of a home. Rhett Brown here, owner and broker of BrownStone Real Estate, with a personal story of why you should never trust a Zestimate (or similar valuation) without a professional’s opinion. 

Some background: I recently ran an experiment. I asked both Zillow and Trulia to tell me the perceived value of my home in the North Main area. (For those of you who might be unaware, Zillow owns Trulia—they are literally the same company). 

• Zillow’s value: $530,000
• Trulia’s value: $390,000
• Actual appraisal value: $730,000 

It doesn’t take a math genius to recognize the massive disparity between these numbers. Sometimes, homeowners will see the numbers flipped the opposite way, with a huge increase in Zillow or Trulia’s evaluation and what their home is really worth from the perspective of a professional appraiser. 

No matter what, a large difference in a home’s perceived value and appraisal value is a massive problem. For example, if I were to list my house as a For Sale By Owner without a real estate agent’s expert price positioning, not only would I be leaving money on the table, but if a buyer sought financing and received an appraisal value well above the offer price, they might be forced to pay the difference in cash or lose the deal—odds are, the deal would fall through. 

How do Zestimates Work?

Zestimates are generated through an Automated Valuation Model (AVM) that analyzes public data, recent sales, and trends. However, these algorithms often overlook crucial nuances that a seasoned real estate professional would consider. Factors like unique property features, local market trends, and neighborhood dynamics can significantly impact a home’s value—elements that a computer model simply cannot quantify.

The data used in Zestimates may be outdated or incomplete. Real estate is a rapidly changing market, and relying on past data can lead to misleading valuations. In contrast, local agents like us at Brownstone Real Estate have our fingers on the market’s pulse, providing insights based on the latest information and real-time trends.

Every neighborhood has its own quirks and characteristics that can affect property values. Agents specializing in your area have the local expertise to assess these factors accurately. We understand the subtleties of specific neighborhoods, which can make all the difference in determining a home’s actual value.

How Real Estate Agents at BrownStone Value Properties the Right Way

Valuing a property involves crunching numbers and assessing the motivations of sellers and buyers. This human element is absent from automated estimates. Our agents bring years of experience, negotiation skills, and a personal touch, which are essential in achieving fair market value for properties.

Instead of relying on a Zestimate, we recommend obtaining a Comparative Market Analysis (CMA) from a qualified real estate agent. A CMA provides a detailed assessment of similar properties that have recently sold, those currently on the market, and those that failed to sell. This approach gives you a clearer picture of your property’s position in the market.

Don’t (Fully) Hate the Zestimate

Zestimates can be handy in giving us a ballpark figure of the perceived value of your home. But here is the key—a ballpark is a pretty large space. At BrownStone Real Estate, we advocate for informed choices backed by real-time data and local expertise. 

If you’re considering buying or selling a property, contact us for a comprehensive analysis tailored to your unique needs. Trust in professionals dedicated to providing you with the insight necessary to make the best real estate decisions.

Your journey in real estate deserves more than just a number!