Have you ever had a bad Zestimate result in an overpriced listing? If you haven’t yet, you’re lucky.
As increasing numbers of homeowners trust Zillow for pricing information, many agents report inaccurate Zestimates are becoming a major issue.
A Zestimate becomes an issue when it’s the first value a seller sees. This is because of a powerful psychological bias called anchoring.
Anchoring describes the common human tendency to rely heavily on the first piece of information offered (the “anchor”) when making decisions. If a seller checks a Zestimate before seeing your CMA, the Zestimate acts as the anchor. The more inaccurate the Zestimate, the more it can hurt your chances of getting a realistic list price.
The bad news is the effect of anchoring is all but impossible to eliminate. The good news is you can minimize it with the right approach.
Here’s how to overcome them.