Choosing Zillow to estimate the value of real estate in New Hampshire may not tell you the whole story
A common misstep for home sellers is turning to Zillow’s “Zestimate” feature to determine the value of their home. It is essential for would-be sellers to understand the limits of Zillow’s “Zestimates,” and why they should speak with a local real estate expert if they are serious about selling their home.
The time has come. You have been talking about it for a while, but you are finally ready to sell your home. What’s next? Well, you look up your house on Zillow to see how much you should list for; $300k, not bad. But wait, how accurate is that number?
Zillow’s popular “Zestimate” feature, while potentially a good starting point, is far from the authority on determining your homes list price. Zillow has admitted that their “Zestimates” have a median error margin of 4.6% Nationally and 4.9% for New Hampshire. Additionally, only about half of their estimates even come within 5% of the eventual sale price. So, what does that mean for your home?
Zillow said it’s worth $300k.
Zillow’s NH ErrorMargin Broken Down by County
Well, a 4.9%margin of error may not sound like a big deal, but when we are talking about hundreds of thousands of dollars in potential sale price, that can be a pretty big swing. Based on your $300k “Zestimate,” your home could be worth as much as $314,700, or as low as $285,300. That is a range of almost $30k if we go by Zillow’s admitted error margin. So, now what? You could be overpricing your home or leaving money on the table. Time to call in the local expert.
A Real-World Example
To better emphasize the importance of consulting a local expert, let’s take a look at one of our most recent closings. We will see what Zillow recommended for a price; it’s eventual sale price, and how long it took to sell.
6 Chicory Ct is a four bedroom, two bathroom raised ranch in Concord, NH. It has nearly 1,800 sq-ft and sits on .38 acres. According to Zillow, this home’s estimated sale price is $215,956. Based on Zillow’s 4.9% New Hampshire error margin; that would place the home’s value as low as $205k or as high $226k. So, where did we end up pricing this home? 6 Chicory Ct was priced at $229,900 and sold in eight days for the listed price. If our clients had gone off their “Zestimate,” they would have left almost $15k on the table, and even if they factored in the error margin and priced it at the top of the range, that would still be almost $4k in potential profits lost.
There are factors with each individual home and locality that Zillow just can’t account for accurately. It is imperative that you consult a local expert when it comes time to sell your home. If you don’t, you could end up overpricing your home or missing out on tens of thousands of dollars in potential profits. We have a team of local real estate experts ready to help you start your real estate journey with confidence.