Several times throughout the week I have home buyers and sellers in the Metro Detroit / Novi Real Estate Market that come to me and say “Zillow says my home is worth X, so that is what I want to list my home for” or “Zillow says the home is worth X, so that is what I want to write an offer to purchase at X”.
Don’t get me wrong, I think Zillow is a neat site if you’re looking for a ROUGH idea of how much your home is worth or thinking of purchasing in the Metro Detroit / Novi Real Estate Market. Per Zillow.com and their latest update on September 15, 2010 they have a median error of home values at their website being 16.7% for the Metro Detroit Housing Market.
So that is saying that there could be an error of almost $17,000 for every $100,000 you go up in value for homes. If you’re looking at a home that is $300,000 , there is a chance that Zillow could tell you the home is worth $249,900! That’s $50,000 in what Zillow calls their “Median Error”.
Per Zillow, their definition of “Median Error” is this: Half of the Zestimates in an area were closer than the error percentage and half were farther off. For example, in Detroit, Zestimates for half of the homes are within 16.7% of the selling price, and half are off by more than 16.7%.
Bottom line is this, the Metro Detroit / Novi Real Estate Market is a very unique market that a computer cannot tell what all of the current trends that are happening on a daily basis. Best way to get a fair market value of your homes worth is to consult a Realtor and have them do a comparative market analysis and give you a break down of what has and has not sold in the past 6 months in your local market place. As always, you can get go to JeffDuneske.com , click on forms and fill out the “Home Evaluation Form” to find out what your home is worth today.