It was announced today that real estate giant, Zillow, is launching a new pricing tool for sellers, named Price This Home. This new tool allows homeowners to create an estimate of their home’s value based on comparable listings and recently sold homes in their neighborhood. The estimate is private and fully customizable.
Here’s a screen shot of what it looks like:
Price This Home is different than the Zillow Zestimate – a tool that’s been around for years that provides a public value estimate for every home listed on Zillow. While valuable, Zestimates have historically been known to be inaccurate by 7.8% or more. In theory, this new tool will increase the accuracy of Zillow’s estimate, but it’s too early to determine exactly how accurate it will be.
This announcement comes on the heels of Redfin’s December 3rd announcement that they overhauled their home valuation tool. Redfin touts that their tool has “the lowest published error rate of any automated home-value estimate.” With this move, Zillow joined the race against Redfin to develop the most valuable home estimate tool for sellers.
“Deciding to sell a home can be stressful, and many homeowners spend a lot of time researching home values and market conditions before contacting their agent,” said Jeremy Wacksman, Zillow chief marketing officer. “Price This Home is an excellent tool in those early days. It shows sellers how their home stacks up against other homes on the market, and allows them to provide extra information to create a more customized value estimate.”
Price This Home uses the home’s Zestimate(R) home valuation, the estimated market value, as a base, and allows the homeowner to select information that will give them a more customized value estimate. To create a Price This Home value estimate, homeowners take several steps.
- Verify their home facts are correct by claiming their home on Zillow and updating facts like numbers of bedrooms or square footage.
- Select from a list provided by Zillow, of for-sale and recently sold homes that are similar to their own home, based on location, square footage, number of bedrooms and bathrooms, curb appeal and interior condition, and eliminate those that are not.
Since no two homes are exactly the same, Price This Home clearly shows sellers the differences between their home and the comps they have chosen, and how those differences impact the value estimate. Once comparable homes have been chosen, Zillow provides a private estimate to the homeowner, and helps connect the homeowner with a real estate agent to help list their home. >> Check out Zillow’s full press release here.