Your Zestimate Lost You $$$$

Ah the Zestimate...My favorite talking point!

Story time....Let me tell you about one of my most recent transactions where we smashed the Zestimate by OVER $200,000!

One of my recent clients has been looking to sell her Cheeseman Park townhome for the past year but wanted to find a replacement home that made it worth the move. The townhome was valued at $1,049,000 according to Zillow’s Zestimate. To her credit she knew that was significantly under value - we reviewed comps together and agreed that Market Value was significantly higher than all the calculators she had access to.

With my market analysis and strategic pricing, we sold the property for over $1,250,000. If my client had relied solely on the Zestimate, she would have missed out on her dream home and over $200,000 in equity!

She would have missed out on her dream home and over $200,000 in equity!

Why is this so deadly?

Here's the danger...many people are under estimating the equity in their home. So they have Miss Realtor from XYZ Brokerage and take the first bid that matches the assumed value of their Zestimate.

Gone are the days of 20 offers bidding up your list price to true market value...this lead to a LOT of lazy realtors that barely know how to work the MLS, let alone pull accurate comps.

This is why pricing correctly is more important that ever, especially for unique properties. It's something I've been calling ANCHORING market value higher. You can't control market value, but you can control people's perception of value.

You can't control market value, but you can control people's perception of value.

The Importance of Professional Guidance

The only way to accurately price a home is by working with an experienced real estate agent who can:

• Conduct Comparative Market Analysis (CMA): Reviewing recent sales of similar homes to determine a competitive and realistic price.
• Assess Unique Property Features: Evaluating how specific characteristics of your home, such as location, upgrades, and layout, impact its value.
• Understand Market Trends: Leveraging knowledge of current market conditions and buyer behavior to set a price that attracts offers without leaving money on the table.

The Reality of Market Value

Anyone claiming to know the market value of your home without proper analysis is misleading you. Market value is determined by what a buyer is willing to pay, which is only revealed once the property is listed AND sold. However, setting the right listing price is crucial. Overpricing can deter buyers, while underpricing can result in MASSIVE lost potential revenue.

Zillow's Zestimate may offer a convenient starting point, but relying on it can cost you dearly. And I recommend you RUN from any Realtor who uses the Zestimate to justify the list price of your home.

Eventually home sellers will realize large companies like Zillow provide almost ZERO insight into the value of your home. Great Real Estate agents make you FAR more money for your home purchase than they cost.