If you’re here looking for information on buying or selling a home chances are high you’ve heard of Zillow. Zillow is a commonly used real estate website that, among other things, estimates the value of a home using an algorithm called the Zillow Home Value Index, commonly called a “Zestimate”.
A wide range of factors are taken into account by the algorithm, including:
-The area’s most recent home sales: Zillow finds data from recent sales in the neighborhood which are comparable to the home in question. It uses this information to estimate a price for that house.
-Location: A home’s value is heavily influenced by its location. The value of a home will typically be higher in areas with excellent schools or desirable amenities nearby.
-The home’s age and size: When determining a home’s value, other factors to consider include the year the home was built and its square footage. Homes that are larger and newer tend to be valued higher than homes that are smaller and older.
-Amenities: Zillow considers any unique features of your home, like a garage, pool, or large backyard.
To estimate the home’s value, the Zillow algorithm also makes use of information from public records like property tax assessments. Zillow also uses street-level and aerial photographs to make assessments. Actual sale prices from the Alaska Multiple Listing Service (MLS) are not reported to the municipal authorities in Anchorage so often public records are behind the real market.
It is important to keep in mind that Zillow’s estimates of a home’s value are just that: estimates. They are not a substitute for a real estate agent’s valuation or a professional home appraisal. They are a good place to start when trying to figure out how much a house is worth, but in the end, the home’s market value will be determined by how much buyers are willing to pay for it. Meeting with a Wolf Real Estate team-member for a no obligation opinion of market value is a smart place to start this process! Click “Contact Us” at the top of this page to get in touch with one of our team members today!