Who are Zestimates and Comparative Market Analysis’ for?
Buyers can use either method to get an idea of whether the asking price is fair on a for sale property. Sellers use both methods to help determine what price they should sell their home for.
What are the major differences?
One of the the biggest differences between Zestimate (Zillow) and a Comparative Market Analysis (CMA) is the method used to determine your home value. A Zillow estimate is automated, pulling basic numbers such as square footage, number of bedrooms and bathrooms, and public tax information which is all plugged into a fixed algorithm.
In comparison, a Comparative Market Analysis uses all of the details mentioned above but also takes into account more detailed information such as updated features, the condition of the property, location nuances, etc. For example, a property on a busy road may sell for less than another property two streets over on a cul-de-sac.
What can I expect the difference in pricing to be?
In San Diego, Zestimate has a Median error percentage of 2.7%. To give you an idea of what this looks like, let’s use a home selling for $500,000 as an example. At a 2.7% variance, the home could sell at $486,500 – $513,500. That’s a difference of $27,000. A real estate agent should get you closer to $5,000-$10,000 difference based on her competent CMA.
Which should I use?
Conclusion: a Zestimate is a great way to get a very general idea of what your property is worth. However, once you are ready to market your home I strongly suggest reaching out to an agent who will take the time to dig a little deeper to price your home more accurately. This will cut back on how long it takes your home to sell and help justify the price you are asking for your home!
Please feel free to reach out with any questions or to get a free Comparative Market Analysis for your own home!
