Real Estate

If you have searched for a home online, you have probably seen something called a Zestimate. Zillow’s estimated value of nearly every property in the country.

A Zestimate is Zillow’s automated estimate of a property’s market value. It is created by an algorithm that analyzes public data such as tax records, past sales, square footage, and nearby comparable properties. In simple terms, it is a computer’s guess at what a home might be worth.

The key word there is guess. Not best guess. Not educated guess. Not even hypothesis and theory tested guess.

Zillow does not walk through the house. It does not know if the kitchen was renovated last year, if the basement floods every spring, or if the property has a view that buyers will pay a premium for.

In a region like the Hudson Valley, those details are everything.

Zestimate’s change the minute a home is listed for sale. True market value of a home is ultimately determined by what buyers are willing to pay in the current market.

Across the Main Street Magazine region, demand for well-priced homes remains strong while inventory remains limited in many towns. When the right property hits the market, at the right price, thereal value becomes clear quickly through buyer interest and competition.

So the next time you see a Zestimate, remember what it really is: a starting point. The computer can guess, but the market always has the final say.

Daniel “Dan” Mahar is a principal broker with Mahar Real Estate. To learn more visit his website at maharrealestate.com.