Is Zillow Estimate Accurate For Home Values In Texas?

I’ve been in the real estate business for over six years and I get this question all the time! Is the Zillow estimate or “Zestimate” accurate for home values in Texas? The short answer is NO.

If you are thinking about using your Zillow Estimate to sell your home For Sale By Owner, or thinking basing your home purchase offer on the estimated value on Zillow, BEWARE! You could be leaving thousands and thousands of dollars on the table!

Here are 2 major reasons why Zillow’s estimates or “Zestimates” are not typically accurate in the state of Texas.

Zillow is a a computer or algorithm. It can only compare your home to others in the neighborhood by the size and the number of bedrooms and bathrooms. Zillow can not take into account the condition of your home, the location or specific upgrades or features your home may have like if you have a pool or not. These factors can have a significant impact on the price your home will sell for.

Zillow does not have access to “Sold” data. Because Texas is a non-disclosure state, which means that unless you are a licensed realtor in Texas, the sales prices are not publicly disclosed online when homes sell. So Zillow is basing its estimate on the list price of homes and not the price homes are actually selling for. Zillow does not have know the “sold price” of homes in the neighborhood, it only has the “list price.” Well in a market where all homes are selling for significantly over the asking price, you can see how this would really throw off the estimated value. Only a licensed real estate agent in Texas has access to this data through the backend of the MLS. Not realtor.com, not Zillow, not Homes.com, and not even major brokerage websites can report actual sold data. They all have to go off the list price instead of the actual price the home sold for.

Your most accurate data when determining the value of your home is going to be the price that homes actually sold for in your neighborhood within the last 90 days. That is the data that even the appraisers will use when determining the value of your home. So make sure you have an experienced Texas Realtor, run a professional home value report using the data they have access to through the MLS to help you determine the value of your home.

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Real Estate Negotiation Tips For Sellers

Typically negotiations take place before signing the initial offer and during the buyer's contingency period after inspections take place. However negotiations can potentially take place anytime before and up to closing and just about everything in a real estate transaction is negotiable - not just price.

Good negotiation is based on the “win-win” concept. Everyone in the transaction gets what they really want and need, not necessarily absolutely everything they’d like. It’s based on conscious compromise, give and take. And it’s the most effective way to end up with the best price and most favorable terms for your home in the shortest amount of time!

My Roll in Negotiations

At its core, negotiation is communication. It's important to listen and ask questions, seeking to really understand all parties to the transaction. We will collaborate together and set goals, prioritizing your needs and desires for the sale of your home. It may also be beneficial to discuss possible areas of compromise before your home hits the market.

When offers come in, I take time to understand each buyer's motivations and priorities by discussing them with the buyer's agent. When a conflict arises, I will work with the Buyer's agent to come up with creative options and solutions that work for everyone while making sure that your most important priorities are honored. I help my clients to keep perspective and stay open to compromising on small issues that allow an otherwise great deal to go through. It is extremely important to stay as calm as possible and to resist over-reacting to unreasonable demands or high emotion from the other side. As your advocate, your best interests, goals and objectives are my first priority.

The Seller's Roll In Negotiations

s the seller, you do not need to be an expert negotiator, but your do play a roll in the negotiation process. Here is a list of items to do during this process:

Remember your priorities: During negotiations and within the contracts, you’ll be

making decisions on hundreds of issues. Some of them matter and some really don’t. But it’s easy to get caught up in all of it and lose sight of what you’re really trying to accomplish by selling your home. Be sure and keep your priorities front and center so that when the inevitable kerfluffle happens, you won’t lose your way.

Stay calm and think it through: Selling a home is an emotional process. It's your home! It's important to stay calm. Take a deep breath. Respond, don’t react. Avoid a knee-jerk reaction and think it through. And if you need time to get into a better place emotionally, sleep on it before making a decision.

Listen and ask questions: As your agent, I will be here to guide and advise you through issue that arrises. This ain't my first rodeo, so please listen. If you don’t agree or understand something, ask questions. Open communication is extremely important to make sure we can find a win-win solution. Together we can collaborate on different solutions to the issue at hand and possible consequences if you don’t agree to the compromise. At the end of the day, you do have the final say in any decision. Let's just be sure to get all the information you need to make a good one.

Be clear: As your agent, I will be negotiating on your behalf. Communication is essential in this process to do my job well. Be as clear as you can with your desires and if you don't like how negotiations are going or have an idea for a better solution, let me know. When you do make a decision or compromise, make sure you are sure enough about it to honor it. Giving your agent clear marching orders will help me represent you to the best of my ability.

Make Sure Your Agent Has the Skills and Knowledge to Protect Your Best Interests

The sale or purchase of a home requires many negotiations. So when you decide to sell your home, make sure you hire someone really good at negotiating. Make sure your listing agent is an expert at their game so that they can negotiate on your behalf to the best of their ability. Your agent should have the skill and knowledge to proactively plan your real estate negotiations for success. As a Certified Real Estate Negotiation Expert and having extensive experience in real estate negotiations, I am well equipped to be your advocate and negotiate the terms of your contract to the very best of my ability.

REAL ESTATE NEGOTIATION EXPERT (RENE) The first and only negotiation credential recognized by the National Association of REALTORS®, the Real Estate Negotiation Expert (RENE) certification is designed to elevate and enhance negotiating skills so that today’s real estate professionals can play the game to win.

Get my FREE Savvy Seller’s Guide here.