The Zestimate. Sellers love it. As an agent, you probably don’t share that same sentiment. The dreaded “But Zillow says my home is worth …” at a listing presentation can quickly have you at odds with potential clients. So instead of ignoring the elephant in the room, you need to confront Zestimates head on.
In our recent survey of over 3,000 agents, we found that only 20% of agents include Zestimates in their CMA report. This is not surprising. But what would be the reason to include Zillow’s “Zestimate” in your CMA reports?
Here’s our top 3 reasons:
- Shows you did your homework
Thanks to the internet, Zillow gives consumers convenient access to real estate information they didn’t once have before, right at their fingertips. Which leads them to believe that the “Zestimate” is the same as your list price. Which you know isn’t true. By including the Zestimate in your CMA reports, it demonstrates to your clients you did your own homework and you see what they are seeing. And, you can better explain why it isn’t always reliable.
- Proves Zestimates can be inaccurate
Zillow’s website states “…the Zestimate is a good starting point and historical reference, but should not be used for the final pricing of a home” they even have a public accuracy chart. While you, as the agent, know that Zestimates can sometimes be off by 20-30%. Your client may not know this. Which is why you can use this to your advantage and explain why it’s not in their best interest to solely go off the Zestimate for the final list price.
- Demonstrates you’re the expert
Most clients don’t have the resources or knowledge that you do. By addressing the Zestimate rather than avoiding it, it enables you to move forward with your listing presentation and establishes trust and credibility. A great tool to help your clients better understand your analysis is with Cloud CMA’s Online Valuation Analysis page. This page takes the sold prices of the comps in your prepared CMA report, and compares them to what the Zestimate was. It also shows how far off Zestimates are for properties most similar to theirs.
Rather than seeing the Zestimate as a hurdle to overcome. use this as an opportunity to educate your clients on the inaccuracies and help build trust. You may even look forward to hearing “But Zillow says my home is worth…” at your next listing presentation!
Ready to overcome the Zillow objection once and for all? Give Cloud CMA a try FREE for 30 days