Zestimates or Guesstimates??

We have all heard of Zillow.com by now, right? I can't tell you how many people call and say, " Well Zillow says my house is worth such and such."  Some folks think Zillow "zestimates" are the end all of home valuations.  Could that be true?  Absolutely not!

The accuracy data below was taken from the Zillow.com  site itself.  The data quantifies how accurate, or inaccurate,  in this case, it's zestimates really are.  When it comes down to it, these huge margins for error are too broad to be considered a serious estimate.  Certainly they are more like "guesstimates" not even in the ballpark when trying to substitute for a real market analysis or estimate from a licensed realtor specializing in your market area.  

For a real market estimate send your request here:    What's My Home Worth Today

 

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About the Author Bill

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3 comments
Brad Andersohn says October 5, 2011

Hi Natalie – Brad from Zillow here.  While there is a great deal that goes into creating a Zestimate on Zillow, and they are far from a guesstimate, the fact that we do transparently provide an accuracy data chart shows our commitment to being open and honest about the zestimates. 

Zillow is a great starting point for consumers to begin their search regarding real property but we always recommend they contact a local expert agent or appraiser to help acquire the closest to market value estimate before buying, selling, investing, or refinancing their home. 

If you or any of your readers would like to learn more about Zillow and some of the other tools we offer and how to use them, feel free to stop by Zillow Academy dot com where we provide free real estate technology and support training. Thanks Natalie 🙂

Reply
    Natalie says October 6, 2011

    Brad~ A lot goes into getting the guesstimate, oops estimate, but your own disclosure shows the massive inaccuracies. So, what the consumer will see, if they pay attention, is that even the effort and practice that goes into Zillow’s process it is not good enough. The work that a true professional Realtor does to get it right, is invaluable, and cannot be replaced or compared to whatever method Zillow is using. The Realtor is more valuable than ever. They bring expertise and interpretation of the numbers and weigh subjective factors in a way that your algorythms can’t match. I appreciate your comment.

    Reply
      Brad Andersohn says October 6, 2011

      Natalie – you are correct in your response that the local agent and appraiser "can bring expertise and interpretation of the numbers and weigh subjective factors in a way that algorythms can’t match," this is why we encourage the consumers to contact local professionals (we have the Premier Agent program in place) which places the local professionals right on the sidebar for buyers and sellers to see and contact.

      I've also been informed by many brokers and agent across the country that even local professionals at times have a tough time pricing properties at the exact market value prices, often times they have to do price reductions with their sellers when this occurs. 
      We do our very best and will continue to provide the closest to accurate values just as we'll continue to support and rely on Industry professionals like you to be in the neighborhoods and communities providing as close to market value pricing as possible.  Our door is always open to you, thanks Natalie. 🙂

      Reply
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