Using Zillow to Evaluate Home Prices: A Step-by-Step Guide

Using Zillow to Evaluate Home Prices: A Step-by-Step Guide

Zillow is an invaluable tool that can help you evaluate home prices and find recent comparable sales in your desired neighborhood. While it may not be the best resource for new listings, it excels at providing information on recent sales and current market listings, allowing you to make informed decisions when buying a home. Here’s how to use Zillow effectively for this purpose.

Why Use Zillow for Recent Sales?

When you’re interested in a particular property, checking recent sales in the neighborhood can give you a clear idea of whether the home is priced fairly, overpriced, or a great deal. Recent comparables (comps) help you understand the market trends and make a well-informed offer.

Step-by-Step Guide to Using Zillow

1. Find the Property:

   • Start by searching for the property you’re interested in on Zillow. Once you find it, click on the listing to view more details.

2. Copy the Address:

   • Copy the address of the property you’re interested in. This will be useful for finding comparable properties in the same neighborhood.

3. Search the Address:

   • Go back to Zillow’s main search bar and paste the copied address. This will bring up the property and place it on the map, showing you the exact location.

4. Compare Current Listings:

   • Look at other homes in the same neighborhood that are currently listed for sale. This gives you an idea of the competition and how the property you like stacks up against others in terms of price per square foot.
   • For example, if the home you like is listed at $231 per square foot, compare it to other homes. If another home in the neighborhood is listed at $270 per square foot, you might wonder why. Look at the details and pictures to understand the differences.

5. Check Recent Sales:

   • Switch your search to show homes that have sold recently in the neighborhood. Use the filter option to narrow down the sales to the last 30 days.
   • This will show you the most recent comps. For instance, if a home similar in size to the one you like sold for $234 per square foot, and your target home is listed at $231 per square foot, you can see that it’s a fair deal.

6. Evaluate the Market:

   • Analyze the data from the recent sales and current listings to determine if the property you’re interested in is priced well. This information can be crucial when making an offer.

Pro Tips

• Real Estate Agents and Investors: Many real estate agents and investors use similar methods to find good deals. They rely on recent sales data to evaluate the market value of properties.
• Appraisers: Appraisers use recent sales to determine the value of a home they are appraising. While they use MLS, the functionality is similar to Zillow in terms of assessing recent sales.

Conclusion

Zillow is a powerful tool for evaluating home prices and understanding the real estate market in your desired neighborhood. By comparing recent sales and current listings, you can make an informed decision about whether a property is a good investment.

If you have any questions or need further assistance in navigating Zillow or understanding the real estate market, feel free to reach out. I’m here to help you make the best possible decision in your home buying journey.

Happy house hunting!