Spring is the best time to sell a property in Chicago as more buyers are looking for homes. One reason is that families house hunt in school districts tailored to their children’s education. With the influx of buyers, it can be a little frustrating for home sellers when online tools like the Zillow Zestimate estimates a property value lower than the sales price. Buyers may question the higher sales price.
There are various reasons that a Zillow Zestimate might be lower than a sales price. Vital information such as interior and exterior home renovations may not be included as the algorithm is pulling off the previous sale of the home. This can cause inaccurate descriptions, like square footage and/or room count, that drive home estimates down. Another factor is that home values are based on past sales and if the market is significantly hotter, those sales may not be an indicator of the current market.
How is a Zestimate determined?
According to Zillow, it is calculated by past sales price, the mortgage records attached to those sales and prior tax assessments - publicly available data. They include psychical features like bedrooms and bathrooms, age and location that weigh the variables to determine the estimate. This information is key, but they are pulling it from public records that may not be up to date or may have been inaccurate from the beginning.
Can your home Zestimate be updated?
Yes, there is a way to fill in a more accurate description of your home. This doesn’t necessarily mean that your estimate will be on target, but at least it can increase the value. Plus, you can creatively add information to entice buyers. Here are some tips on How to Increase Your Home's Zillow Zestimate.
If you have questions or would like a custom property value assessment, contact us. A custom property value assessment will help determine an up to date market value based on current sales of comparable properties.