How Zillow Zestimates Determine Home Value
While Zillow may do its best to give you an accurate assessment home's value, yet in the end, it is only an automated system that cannot think for itself. Zillow simply cannot take into account all of the possibilities that can affect the value of your San Diego home.Zillow uses a proprietary formula to determine the value of your San Diego home based off of information the website has obtained from public records and information entered by users. Zillow's home value algorithm knows what the your home previously sold for as well as how much other homes sold for in the surrounding area. While Zillow's home value formula is proprietary, we can conclude that they are also using information from the San Diego County Tax Assessor's Office and looking at the assessed home value as one of their factors.If you’re looking to find out the real value of your San Diego home, you want to work with a local agent who is familiar with the San Diego real estate market. There are many factors to consider when buying or selling a home. The San Diego real estate market is much like the commodity market, because it is based on supply and demand. An experienced real estate agent will be able to help you determine accurate assessment of a home’s value.CLICK HERE TO BUY OR SELL A HOMEZillow’s website, they describe their accuracy in the San Diego region as falling into several categories of accuracy. To keep things simple, let’s just talk about where Zillow is most accurate.Zillow states that they are “99.5% accurate within 20% of the sales price for a Zestimate” done on a San Diego Home. Obviously, that’s just not close enough to be relied upon. When referring to home prices in San Diego, their website states the following:“Foreclosures will be a factor impacting home values in the next several years. In San Diego County 0.5 homes are foreclosed (per 10,000). This is the same as the San Diego-Carlsbad Metro value of 0.5 and also lower than the national value of 1.2.”Sorry Zillow, you're wrong again, the foreclosure crisis has passed a long time ago, and foreclosures are not affecting values of San Diego homes.“The Zestimate® home valuation model is Zillow’s estimate of a home's market value. The Zestimate incorporates public and user-submitted data, taking into account home facts, location and market conditions”.CLICK HERE FOR FREE HOME VALUE REPORT“It is not an appraisal and it should be used as a starting point. We encourage buyers, sellers and homeowners to supplement the Zestimate with other research such as visiting the home, getting a professional appraisal of the home, or requesting a comparative market analysis (CMA) from a real estate agent.”I agree with Zillow on the above statements! Zillow is NOT in the business of appraising homes. Did you know that when banks are looking for an accurate home assessment they will often seek out a licensed real estate agent, It’s absolutely true, a bank will seek out agent to do what’s called a broker price opinion. I can assure you that no bank has ever sought out Zillow to determine the price of a home!If you’re like many San Diego homeowners, you most likely go to the Zillow website and attempt to determine your home’s value. When you use the Zillow Zestimate, you will get a price, yet do not rely on that price to be accurate. What you don't see is the fine print that explains “It is not an appraisal and it should be used as a starting point. We encourage buyers, sellers and homeowners to supplement the Zestimate with other research such as visiting the home, getting a professional appraisal of the home, or requesting a comparative market analysis (CMA) from a real estate agent.” CLICK HERE FOR FREE HOME VALUE REPORT
Modest Price San Diego Home Price Gains Predicted For San Diego into 2020
The San Diego Housing Market Has CooledAfter many years of price gains, the San Diego housing market has begun to cool off. Because victory has increased in most parts of the San Diego market is balanced yet shifting in favor of buyers.Based on the latest data from Zillow, median San Diego home prices are up modest 1.9%. In the future, Zillow predicts even smaller towards 2020. In July 2019, Zillow stated:
“San Diego home values have gone up 1.9% over the past year, and Zillow predicts they will rise 0.9% within the next year.”Presently as of August 2019, the median home value in San Diego was around $635,000. Some industry experts don’t see prices climbing much higher, yet many factors that can affect your hyper-local neighborhood.While most local San Diego Agents don’t rely on Zillow for their information, there’s nothing wrong with looking at their data. Of course, our team is always comparing what Zillow predicts to the professional data that is only provided to local San Diego REALTORS.Forecasts by Zillow are just a guesstimate of where the market could be now. When in doubt, reach out to a member of our team so we can interpret the data for you so you can make informed buying or selling decision.