If you want to find out what your home is worth, you shouldn’t trust Zillow and their Zestimates.
Why? Zillow uses an algorithm to calculate your home’s value, and this algorithm is based on a cookie-cutter cutout of all other homes in the area. Zillow doesn’t have the ability to see inside your home and give it its true value—it doesn’t know whether your home’s been remodeled, what kind of flooring it has, whether your kitchen is granite or Formica, etc.
This is especially true in the Monterey Peninsula, where we have an eclectic mix of homes.
Compounding the problem is the fact that we also have a lot of oceanfront lots. If you own an oceanfront home, it could be worth three or four times as much as another home that’s right across the street but not facing the ocean.
In general, you have to be careful with how Zillow values your home. Homes are like people—they’re all different in their own way. Zillow’s algorithms are designed for big developments with cookie-cutter style homes, which we don’t have in our area. Even then, a Zestimate still can’t account for any upgrades you make to your home.
A perfect example of why you can’t trust Zillow is the fact that the CEO of Zillow himself undervalued his home by 40% by using a Zestimate. That 40% totaled a whopping $700,000.
If you have any other questions about Zillow or how to accurately determine your home’s value or you’re thinking of buying or selling a home in our market, don’t hesitate to reach out to us. We’d be glad to help you.