Beware Of Zillow Zestimates
Zillow has its purpose and can help provide consumers with great info on homes, recent sales, and real estate data. My issue is the stock that buyers place in their zestimates. A zestimate is the value that zillow gives to a home by using recent home sale data in the area.
In the DC Metro area where prices are continually changing, this can be a VERY difficult task. Zillow even discloses this on their site.
Here is their accuracy level for the DC Metro area…
- Homes with a zestimate… 91%
- Homes that sold within 5% of the zestimate… 32%!
- Homes that sold within 10% of sales price… 54%!
- Homes that sold within 20% of sales price… 77%!
- Median Error… 8.9%!
I guess zillow is proud of these numbers but they are way too far off for my comfort. How can it be okay to not be able to guesstimate within at least 10% of what a home will sell for almost 50% of the time? Sellers and buyers would hate me if I was this far off when telling them their homes value or what to offer.
They do disclose that the zestimate is not an appraisal. What they should say is that they are throwing darts blindly and just give a price RANGE of what your home could be worth.
If you would like my opinion of your homes value contact me!
All information is deemed reliable and should be verified for accuracy. Data was taken from the zillow website.
Leave a Reply
Featured Areas
