STL Real Estate Zestimate
Many people will often look at the zestimate and are tempted to make a purchasing and buying decision on it.
Disclaimer – I am very biased and am completely against the zestimate, but lets leave my opinion out of it.
Ok – so the zestimate accuracy table shows that certain regions are between 1 and 4 stars.
Philadelphia is 4 stars which means that they have a whopping 44% of sale prices that are within 44.9% of 5% of the sales price.
So if a home sold for 400 thousand dollars, the less than half the time the zestimate would have said the home was between $380 to 420 thousand dollars.
85% of the time they are within 20% of the sales price so that means the zestimate would have been from $320,000 to 480,000 85% of the time…that’s a huge range…and its not even 100% of the time!
And that’s for a 4 star area….St Louis is a 1 star area which means that they actually aren’t showing data on the how accurate their STL real estate Zestimate is…
If you are still considering using a Zestimate as an indicator on a home value, lets take one more factor into consideration – Zillow is quoted as saying on their site:
“the Zestimate is a good starting point as well as a historical reference, but it should not be used for pricing a home.” Exact Quote for Zillow.com about the zestimate
Let me say that again – “It should not be used for pricing a home” Don’t believe me, visit http://www.zillow.com/zestimate/ because that’s where I found this data and information.
Summary – Zestimates are worthless. Don’t look at them. Don’t lose sleep over them. Don’t worry about if its too high or too low. They are a good gimmick to get people talking about Zillow and using their site, but there is no real world value in them.
What you need to use to value your home is an expert real estate adviser in the St. Louis area.
You can also use an appraiser, but there are some pitfalls with even using an appraiser as well. Fill out the form on this to learn all your options for pricing a home. Using the STL Real Estate Zestimate is a bad idea. JUST PLEASE STAY AWAY FROM THE ZESTIMATE!