Hi, I’m Terry Hastings with a Zillow update. Zillow’s not going to like this. Zillow is a real estate online database that was created in 2006 by the founders of Expedia.com. Users go to Zillow to find an appraised value of their home. At its peak, Zillow is viewed by 75 million people per month. So how does Zillow come up with a value for your property? They claim to use a ‘proprietary algorithm’, which is Latin for “I’m not going to tell you.” Most likely, they use the tax assessment of your home, and add a multiplier to that which then derives the value of your home. So how close are these values which Zillow calls a “zestimate?” Not so close. According to Zillow’s own website, their zestimates are far from accurate. If you click on Zestimates link hidden at the bottom of their homepage, you can get Zillow’s own admission of accuracy, and according to Zillow, in the US as a whole, zestimates are currently within 10% of the final sales price 73.3% of the time. In other words, 27% of the homes that are valued on their website are wrong. This means on a $500,000 house, Zillow misses the mark by $50,000 27% of the time. If your realtor had told you they were within 10% of your home’s true value only 73% of the time, would you work with them? So why would you rely on Zillow? So how do you get an accurate value of your home? Call your local realtor. Your local realtor has seen the inside of comparable properties as well as other homes on the market. They can even take into account any improvements you may have made into your home as well. A computer program simply can’t do that. So remember, when it comes time to determining the value of your property, nobody beats a realtor. Feel free to share this video with anyone, or you can even post it on your company’s Facebook page. If you have any questions, contact me at [email protected] Thanks for watching!