Have you ever looked at your “Zestimate” and thought you were in great standing, only to be told by a realtor or home buyer that may not be the case? It is far too often that the actual value is not what shows up on Zillow. Huge bummer! Are Zillow prices accurate? …In Texas, usually not.
So, why are Zillow price estimates so inaccurate in Texas?
To estimate the price of any house, you must know what comparable properties in the area are selling for. The more similar the house is, and the closer in proximity it is to your target house, the more accurate the estimate is.
In many states, the sales price for any residential property is public knowledge. This makes estimating the value of nearby and comparable homes much easier. However, in Texas, there is no such requirement that parties to the transaction disclose the sales price. Without this information being public, it’s far more difficult to estimate the value of other properties.
Zillow can only use the sales prices shared with them by sellers (which usually doesn’t happen) or to use the property tax appraisals. Often those appraisals are incorrect as well, since buyers and sellers need not share that information with the tax office either. What Zillow is left with is a batch of inaccurate “Zestimates” on their website for Texas properties. So, are Zillow prices accurate in Texas? Don’t bet on it.