Don’t Trust the Zestimates! |
Bergen County Real Estate Show #6
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Bergen County Homes for Sale
|Under $400,000||Under $800,000|
|Under $500,000||Under $900,000|
|Under $600,000||Under $1,000,000|
|Under $700,000||Over $1,000,000|
This is Ryan Gibbons of the Gibbons team and I’m here with episode 6 of the Bergen County real estate show where we’re discussing zestimates. You’ve been on Zillow’s website you’ve seen that number right underneath a listing price that says there’s a zestimate. And it’s usually very different from what that listing price is. And the reason is that they’re using an algorithm to decide what that house is worth.
And what are they looking at? They’re looking at tax records they’re looking at recent sales in the area and that’s pretty much it. You know it really is going to depend on what they know about that house and in Bergen County some of that information might be lacking. So if you were to look at a tax record for a particular home in an area it may not tell you how big it is it might not tell you how many beds and baths and beyond that they have no idea the condition of the home.
So what is Zillow doing? They’re coming up with an algorithm they’re giving an average price of what they think that house is worth. And I hate to break it to you but
Zillow has never been in any of these homes. They don’t send anyone out they don’t know what the houses are looking like.
So if you dig deep down on their website on the bottom you’ll see they’ll discuss their zestimates. And if you look at Bergen County their most recent average was about 5.1 percent accuracy. And for about a $575,000 home which is an average sales price in our area that can mean about $29,000. So that could mean on that average house that they could say it’s worth over$600,000 and they can also say it’s worth under $550,000.
So you have to be very careful when looking at those. They’re a guesstimate and they’ll even admit that so to get the real value of your home you need to talk to a licensed real estate agent who’s going to come to your home who’s going to see the upgrades that you’ve done understands your neighborhood and knows what those other comparable homes look like.
So please do not look at those zestimates. Zillow is a nice website to use they have other good information to search for homes but when it comes to finding the true value of a home whether you’re a buyer or a seller you need to work with an agent who knows the area who understands the comparables and can come up with a real value for that home.
So I hope you enjoyed this week’s episode. You can find all of our episodes at BergenCountyRealEstateShow.com or you can find more of them on our social on Facebook and Instagram @gibbonsrealestate. Hope you enjoyed the show this week have a great day and we’ll see you in the next video.Related Articles
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