Why You Should Not Use Zillow

Whether you’re selling your house, or just staying up-to-date on the equity you’ve gained on it, you might be tempted to look at Zillow to check what your house is worth. While Zillow is great to use if you're just browsing, you should not look at the “zestimates” as an accurate depiction of home values.

Zillow is an advertising company, not a real estate brokerage. They sell advertising to real estate professionals. Actually, most real estate agents despise Zillow, as it paints a false picture of the current market.

Zillow has inaccurate numbers because it does not have the data that the appraisers and agents do, which comes from the MLS, or multiple listings service. Plus, it is almost never up-to-date on current active listings.

The importance of knowing the true value of your home comes into play if you’re selling your house and trying to decide on a price. Pricing your house right is crucial in this market. Plus, if you decide sell your house for $500k, but according to an appraiser, its only worth $480k, a mortgage lender or bank is only going to finance (i.e. give the buyer a loan) for $480k. So unless you have a cash buyer, you are most likely going to run into issues as it gets closer to closing.

Its also important if you’re looking to get a cash-out refinance or a HELOC (home equity line of credit). Your lender or bank is going to want to know the true value of your home before making those decisions.

The most accurate way to know the true value of your home is to get an appraisal, which is simply a professional opinion of value, in which only licensed appraisers can determine. However, that can cost around $500, so that is really only necessary if you’re selling your house, or doing a cash-out refinance or HELOC.

However, if you’re just curious about the equity in your home, and don’t want to pay for an appraisal, contact me (or your local real estate agent), and ask for a CMA, or comparative market analysis (also known as “comps”). Real estate agents (and appraisers) have access to their local MLS. We are able to pull data from the MLS to give you a more accurate estimate of your home value!

Enter your info here if you’d like a CMA! https://oliviacook35.wixsite.com/livinjax/contact

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ocook@redzonerealtygroup.com