How Accurate is Your Zestimate?
This question comes up often to real estate professionals. When looking at what a home is worth Zillow offers what they term as a Zestimate which is online, free and easily accessible.
What is a "Zestimate"?
The Zestimate home valuation is Zillow's estimated market value, computed using a proprietary formula. It is not an appraisal. It is a starting point in determining a home's value. The Zestimate is calculated from public and user-submitted data, taking into account special features, location and market conditions. It is very easy for anyone to type in an address and be given a number. The problems occur when that number becomes the number that homeowners or buyers look to as the value of a property.
To see how accurate Zillow's Zestimate I decided to compare Zillow's Zestimates to some of our appraisals and see how accurate they were. Due to confidentiality, no addresses are given. Here are my findings:
1. Home: 1,971 Sq Ft 4 Bedrooms, 2 Bathrooms
Zestimate - $181,059
Zestimate was 6.67% lower
2. Home: 1,194 Sq Ft 2 Bedrooms, 1 Bathroom
Zestimate was 32% higher
3. Home: 2,664 Sq Ft 3 Bedrooms, 2.1 Bathrooms
Zestimate was 30% lower
4. Home: 1,136 Sq. Ft. 3 Bedrooms, 2 Bathrooms
Zestimate was 56 % higher
5. Home: 1,658 Sq Ft 3 Bedrooms, 2 Bathrooms
Zestimate was 102 % higher
6. Home: 2,584 Sq Ft 4 Bedrooms, 2.1 Bathrooms
Zestimate was 2 % higher
7. Home: 2,673 Sq Ft. 4 Bedrooms, 2.1 Bathrooms