Showing posts from January, 2016

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 Bat…