If you’re a homeowner and you’re wondering about your Long Beach home value, you may be perplexed. There’s the assessed value, there’s the “Zestimate,” and if you’ve had your home appraised, that may have provided you with an even different value. So which number should you believe?
When “CBS This Morning” co-host Norah O’Donnell asked the chief executive of Zillow recently about the accuracy of the websites automated property value estimates — known as “Zestimates”– she touched on one of the most sensitive perception gaps in American real estate. Zillow is the most popular online real estate information site. Along with listing information on homes, it also provides home value data, which is routinely used by shoppers, sellers and buyers, who use these numbers in their decision-making process.
Yet, according to Zillow CEO Spencer Rascoff, the “Zestimates” have a “median error rate” of about 8 percent. On a $500,000 house, that could mean a $40,000 disparity. Rascoff deemed the Zestimates “a good starting point” but if you are considering selling your home and crunching numbers to see whether it makes sense, you should have more reliable information. In Long Beach CA and surrounding areas, a recent review of numbers shows that some recent sales prices were very close to the homes’ Zestimates, and others were off by more than $40,000.
The value of your home is a constantly moving target as the market fluctuates, but if you want to know what the current “market value” is, the best course of action is to ask a local Realtor to provide you with a comprehensive market evaluation of your home, taking into account its condition, location, and local neighborhood market patterns. If you’d be interested in finding out the value of your home in the Greater Long Beach area, please let us know.