Everyone knows that the Zillow’s Zestimate is inaccurate, but when we get ready to sell our homes, we suddenly give it more strength and power.
The biggest challenge this brings is the Zillow bias: the notion that the Zestimate is wrong primarily because it doesn’t account for all the good things about your house or the updates you’ve made.
As a result, homeowners often use the Zestimate as a starting point, then add dollar value to it to account for what they’ve done.
Very few owners assume that the Zestimate is too high, with most assuming it’s too low or assuming that the number was correct before improvements were made.
This is understandable, but a risky bias.
2022 Review: Demand
