We love Zestimates as much as you do. They can be great! They offer information for more than 100 million U.S. homes. But are Zestimates accurate?? Well…. sort of.
Zillow claims its Zestimates are within 10% of a home’s final sales price. 10% is actually not a very good estimate. For a house Zestimated at $1,000,000 – that means the final sales price could be as little as $900,000 or as high as $1,100,000. I don’t know about you, but that doesn’t give us a lot of confidence!
Are Zestimates Accurate?
So, how do they come up with this information? People are asking are Zestimates accurate and Zillow believes Zestimates are accurate? There is actually a lot that Zestimates do not account for in their calculations that you should be aware of.
- These home values are pulled from both public data such as sales in your area, your tax assessment and user-submitted data.
- Zestimates are only as good as the data upon which they are based. There are many variables that could be wrong in Zillow – a home’s bed/bath counts, square footage, lot size, its last sale price/date and more.
- The number of sales in an area drive accuracy. The more sales in your market, the more accurate the overall numbers will be.
- The type of sales also matter. If you live in an area where most of the homes are very similar to your home, values are more likely to be accurate. If you live in a more urban area where homes can be a bit more diverse in terms of size and condition, values are harder to judge.
- Unless you were required to pull permits your home improvement, the value they added is likely not going to be reflected in the tax records.
So, are Zestimates in YOUR neighborhood accurate? How can you find out an accurate valuation of your home? Contact an experienced local agent who can provide a much more thorough and accurate market analysis. Nothing can replace an agent seeing your home, its location, improvements, and amenities, in person. A Realtor will also take into account the current local market, any anomalies with your house or neighborhood and the way things are currently trending which Zillow cannot.
Have questions about your home’s value? Give us a shout. We’re always happy to help – even if you aren’t thinking about a move.