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    Considering Selling Your Home to Zillow? Read This First!

    When it comes to selling a home, saving time, money, and stress is key. Zillow, the popular online real estate group, says that they can do all of this and more by offering cash for your home up front. No listings. No showings. No home preparations. On the surface, this approach sounds great for a potential seller. But as the adage goes, ‘if it sounds too good to be true, it probably is.’
     
    Armed with a fair bit of skepticism and dash of curiosity, we here at Wisdom Real Estate decided to research Zillow’s new home buying program. We found some interesting things that we wanted to share here. Our hope is that this blog will be informative to potential sellers considering Zillow as an alternative to a traditional real estate agent.
     
    Participation in Zillow’s new home buying program, Zillow Offers, is relatively simple. The homeowner inputs their home information onto Zillow’s website and then Zillow’s algorithm will take that information and provide you with a “fair market” cash offer for the home. If you choose to move forward with the offer, a Zillow representative will inspect the home, provide a final offer and, if accepted, Zillow purchases the property. This home buying process is being touted as “fast” and “efficient,” but how competitive is their offer?
     
    Zillow’s pricing algorithm is partially based on their Zestimate, or an estimate of your home’s value based on public records and any information that you’ve personally provided to Zillow. But these Zestimates may not be entirely accurate, as Zestimates are often based on outdated or incorrect data1,2. It’s not unheard of for a Zestimate to be more than 10 percent off from the sales price3 and this can have a substantial effect on how much money you net from the sale of your home. For instance, if a Zestimate comes in at $300,000, and that Zestimate is off by 10%, then selling your home based on the Zestimate alone could net you a loss of $30,000! Keep in mind, a Zestimate is not an appraisal. While your home will still need to be inspected by a Zillow representative, a common criticism of Zillow Offers is that most final offers are significantly lower than the first4. Their goal is to profit on your home, and what better way to do that than providing a lowball offer.
     
    For those people that need to sell their home quick, and who want to avoid the hassle of putting their home on the market, Zillow may be an attractive choice. However, you are more likely to receive a more accurate valuation and top dollar by using a real estate agent who will expertly get your home ready to show and fully expose it to the market.
     
    Bottom line, ask yourself, does the convenience and low hassle outweigh the profit you could possibly make when going with a traditional real estate agent? At Wisdom Real Estate, our licensed professionals will give you the best advice possible to market your home, sell quickly, and earn you the most profit. It’s a win, win, and WIN! Contact a Wisdom Real Estate agent today. We will do all the heavy lifting for you, making selling your home simple and hassle free.

    1. “Zillow Estimates: Not As Accurate As You Think” https://www.investopedia.com/articles/personal-finance/111115/zillow-estimates-not-accurate-you-think.asp Accessed April, 2021
     
    2. “Do Zillow ‘Zestimates’ mislead home buyers? Lawsuit claims yes” https://www.marketwatch.com/story/do-zillow-zestimates-mislead-home-buyers-illinois-lawsuit-claims-yes-2017-05-22 Accessed April, 2021.
     
    3. “But Zillow Says My Home is Worth…” https://www.zillow.com/agent-resources/blog/but-zillow-says-my-home-is-worth/ Accessed April, 2021.
     
    4. “An Expert Review Of Zillow Offers For Home Sellers” https://www.isoldmyhouse.com/zillow-offers-review/ Accessed April, 2021.
     
    5. How does selling a house to Zillow compare? https://www.zillow.com/z/offers/pricing/ Accessed April, 2021.

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