What Is Zillow Homes Property Trust?

Zillow Home Value Estimates

Buyers and sellers can be helped by websites like Zillow. Nowadays, buyers and sellers can learn a lot more about the area properties, even if they are not real estate agents. If you want an accurate price on a home, you can ask for it from Zillow.

It is only an automated system that can think for itself. Home value can have a correlation to market value. They are not the same things.

Assessed values are used by towns to collect taxes and sometimes trail the actual market value of a home. The sale prices of nearby homes are useful when you are buying or selling. They are known as comparable sales and are a factor in how a local real estate agent will price a home.

If you are in an area with different ages, sizes, and features, it becomes an apple to oranges situation. The median error rate is 5 percent. It sounds impressive, but you don't realize what it really means.

It means that the property value is within the purchase price 50 percent of the time. The media error rate for on-market homes is 1.9%, while their off-market homes come in at 7.5%. The final sales price is a critical factor in determining the best decision for buyers and sellers.

Zillow vs. Avatar: An Alternative to the Standard Model

Along with accepting user-submitted data, Zillow deals with problems of inaccuracy by reporting estimated value ranges for individual properties. The Zestimate is more reliable if it is smaller, because it means more data is available for that property. The high and low end of the range will give you a better idea of what a home is worth.

The company was sued by Chicago homeowners in the summer of 2017, who claimed it misled them by providing them with very low figures. The Zestimates were treated like appraisals by most users. According to a report by MarketWatch, the lawsuit had no merit and that Zillow denied that its Zestimates were appraisals.