“Did you talk to our neighbors to see how much their home sold for? Someone told me it sold for $20,000 over asking with multiple offers!”

A For Sale sign in the yard and then a few days later, a SALE PENDING sign rider is hung beneath it. Since May 2020, the real estate market has seemingly climbed and climbed without flattening out. Home prices seem resistant to any downward pressure. 

When you see your neighbor’s house sold, do you hop on the computer or pull up Zillow on your phone to check the Zestimate? Zestimates, or Zillow’s automated values of homes, are not all bad. Yet, they can be misleading. A property’s value is generated from aggregated data sources that produce an exact number or range of what your home could sell for. This estimate is not a guarantee. 

Automated values of homes like Zillow’s Zestimates can give a ballpark figure of what a property is worth. However, in a changing real estate market where rising interest rates are putting pressure on home prices. these estimates are often inaccurate. 

Information aficionados and analysts love algorithms. We understand the appeal of automated values. You can pull up the Zestimate for your home and get a rough idea of what your home is worth without any appointments or discussion with a real estate agent. 

When one of our real estate agents meet with sellers, they ask whether you have checked your Zestimate or received another computer or algorithm based valuation. Depending on the way the market is going (speeding up or slowing down) and the unique features of the home, we can evaluate whether the estimate needs to be adjusted. 

 

Currently, Zestimates are likely to be off because the housing market is slowing down due to the decrease in home buyer demand because of the increased mortgage rates (i.e. mortgage rates went up, so did buyer’s monthly payments, so fewer buyers in the market). 

Who sets the price for your home? You choose what you want to list your home for, but ultimately the market and the number of home buyers in the market decide what your home is worth. 

Here at KALEO Real Estate Company, we can list your home whether you are downsizing, moving to a different county, or out of state to Idaho, Arizona, or Montana (to list a few popular California out-migration states). Some of the popular migration states are experiencing lots of price reductions, so it could be a great time to slide into your retirement home. 

Give us a call at 626-609-2130 and tell us what the Zestimate of your home is. Let’s find out whether you could sell for that this month. 
 

This content is not the product of the National Association of REALTORS®, and may not reflect NAR's viewpoint or position on these topics and NAR does not verify the accuracy of the content.