Zestimates: Why They Often Get Home Values Wrong!!! #zestimate #zillow
Here are five reasons why zestimates face accuracy challenges:
They don't take into account many important factors that affect home's value such as upgrades condition and location.
For example if a home's square footage is recorded incorrectly zestimate will be based on the wrong information.
Zestimates are based on historical data and do not take into account market fluctuations like the current supply and demand situation or the economy that can greatly affect property values. It is especially critical when prices change fast like in 2022 when home prices jump by 16.5% between January and April only to fall by more than 20% from April high till the end of the year.
Michael Talis:
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Coldwell Banker Realty
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