Zillow and its Zestimates have become a common topic of conversation. Here’s what you should know about them.
One of the most common questions I’ve been receiving lately is: “How accurate is the Zillow Zestimate?”
Every time we do a market evaluation on a home, we pull up its Zestimate and we are also pulling up recent comparable sales numbers. After reviewing dozens of these Zestimates and comparing them with the home’s actual market value, I have a few thoughts about them.
The first is that they are extremely good at analyzing large amounts of data. If you had 10,000 homes as a sample size, the numbers would be right on the money.
However, when it comes to individual homes the numbers aren’t as accurate. In fact, they are off by 15% to 22% nearly 70% of the time. It’s a good tool to use when you’re just starting the process, but when you’re trying to come up with an actual list price for your home, there is a much better way to determine what that price should be.
If you have any questions about the value of your home or if you or someone you know is looking to make a move, don’t hesitate to give me a call or send me an email. I would love to hear from you.