Most people, when going to sell their home on their own, look to Zillow for information on their home's value. The most common reason to sell on your own is commission. A Michigan Realtor is paid a 6% commission on a home sale. Recently, we sold a home in Livonia for $214,000. Originally, after doing a Maximum Home Value Assessment, we listed the home at $205,000. If our clients had taken their Zillow "Zestimate", this is what would have happened:
That is a $24,000 difference. And this is not a unique case. In fact, by Zillow's own admission, they are wildly inaccurate in performing home valuations. Just look:
Half of the time, they are within 5% of the final sale price of a home. That doesn't sound bad until you think about this: 5% of a $200,000 home is $10,000. And in our case above, it was over double that! Now, let's look at where Zillow says they are most accurate. They claim that 84% of their Zestimates are within 20% of the sale price. On our clients' home, that would have had them pricing their home at $164,000, $50,000 less than we sold it for. And, Zillow isn't even as accurate as all of that. They claim a median error of 5%. That means that half of the time, they are an additional 5% off. So 84% of the time, they are within 80-85% of the final sale price. That math is fuzzy.
Let us provide clear numbers. The average home listed with Dwellings sells for 7% more than other homes in the same neighborhood. The standard commission in Michigan for a Realtor is 6%. So, while you are attempting to save money by selling on your own, at best, you will list your home for 20% less than you should.
Plus, that 6% gets you more at Dwellings than it does anywhere else. We stage every home, FREE. We have professional photos taken, FREE. Our comprehensive marketing strategy is INCLUDED for every home we list. Simply put, we take the commission and use it to market and sell your home.
Get Your Home's Real Value Now!