Why Does Zillow Say My Idaho Falls Home Is Worth Less?

This one comes up a lot. Somebody in Idaho Falls pulls up their house on Zillow, sees a number lower than they expected, and their stomach drops. Then they call me and ask, "Is my house really worth that little?" Sometimes the answer is no. Sometimes it's closer than they'd like. Either way, it helps to understand where that number comes from before you let it ruin your evening. And if you want a real number instead of a computer guess, you can get a free Idaho Falls home value report from me anytime.

What a Zestimate actually is

Zillow's number is an automated estimate. A computer looks at public records, past sales of your home, recent sales nearby, and whatever details are on file for your property. Then it runs all that through a formula and spits out a value. Zillow itself calls it a starting point, not an appraisal.

That's not a knock on Zillow. It's a useful tool, and I look at it too. But nobody from Zillow has walked through your front door. The formula only knows what's in the data, and the data is often incomplete or out of date.

Why it might be low on your house

Here are the usual reasons I see when a Zillow number comes in under what a house will actually sell for.

Your updates aren't in the records. If you redid the kitchen, put in new flooring, added a bathroom or finished the basement without the county records being updated, Zillow doesn't know. To the formula, your house is the same as the day you bought it.

The square footage is wrong. This happens more than you'd think. Finished basements are a big one around here. Lots of Idaho Falls homes have them, and public records don't always count them the way a buyer would. If the record says 1,400 square feet and you've really got 2,600 finished, that's going to drag the estimate down.

The comps don't match your house. The formula grabs nearby sales, but it can't always tell a well-kept house from a fixer. If a couple of rough houses sold on your street, they can pull your number down even though your place is in great shape.

Rural and edge-of-town properties are hard to model. Out toward Rigby or Shelley, you might have acreage, a shop, outbuildings, water rights or a long gravel drive. Fewer homes like that sell, and the ones that do are all a little different. Computers have a tough time with that. A house on a few acres outside Shelley just doesn't fit neatly next to a house on a city lot.

The market moved faster than the data. Sales take time to show up in public records. If prices in your area have shifted in the last few months, the estimate may be catching up.

And sometimes it's high

To be fair, it goes the other way too. I've seen online estimates come in well above what a house will bring, especially when the house needs work the records don't show. An old roof, a tired furnace, foundation issues, original everything. A buyer and their inspector will see all of that. The formula won't. So don't treat a high number as money in the bank either.

Why different sites give you different numbers

If you check Zillow, Redfin and a couple of others, you'll probably get a few different numbers for the same house. Each one uses its own formula and its own mix of data. None of them is "the" answer. If they're all clustered close together, that's a decent sign you're in the ballpark. If they're spread way apart, that tells you your house is harder to estimate, and that's exactly when you want a real person looking at it.

What you can do about it

First, check your home's facts on Zillow. If the bedrooms, bathrooms or square footage are wrong, you can usually claim your home as the owner and update the details. That can help the estimate, though it won't fix everything.

Second, do a little homework of your own. Look at what homes like yours have actually sold for recently, not what they're listed at. I walk through exactly how to do that in how to calculate your house's worth. It's a good gut check against any online number.

Third, try more than one tool. My site has an instant estimate you can run in about a minute. Compare it to the others and see where they land.

What really sets your price

At the end of the day, your house is worth what a buyer will pay for it, and if they're getting a loan, what it appraises for. Buyers walk through and react to the things no formula can see. How it feels when you walk in. The light in the kitchen. The yard. The neighbor's dog. The appraiser looks at recent comparable sales and adjusts for the real condition and features of your home.

That's why I don't price a house off an online estimate. I pull the actual sales from the MLS, look at what's on the market right now in Idaho Falls, Rigby, Shelley or wherever you are, and I come see the house. Then I'll tell you straight what I think it'll sell for, and why.

Don't let the Zestimate decide for you

If Zillow says your house is worth less than you thought, don't panic and don't give up on selling. It might be right, or it might be missing half the story. The only way to know is to have somebody take a real look. Request your free Idaho Falls home value report and I'll go over the numbers with you, no pressure. Or email me at alan@smartselleridaho.com. - Uncle Al

Idaho Falls Home Seller FAQs

Can I change my Zestimate?

You can claim your home on Zillow and correct the facts, like bedrooms, bathrooms or recent updates. That may move the number, but it's still an estimate, not what a buyer will pay.

Why did my Zestimate drop when nothing changed?

The algorithm reacts to nearby sales and market shifts, so one odd sale in your area can pull it around. It doesn't mean your house got worse overnight.

Do appraisers or lenders use Zillow?

No. A lender orders an appraisal, and the appraiser uses recent comparable sales and actually looks at the house.

Which is more accurate, Zillow or a market analysis?

A market analysis from someone who knows Idaho Falls, Ammon and Rigby, because it accounts for condition, upgrades and the street you're on. Want a real number to compare? Get a free home value.

Photo: Sociotard / Wikimedia Commons, CC BY 3.0