How accurate is zillow home value?

Question

Hi BP Community,

i bought my 2 family rental property for approx 75k and zillow is now telling me it is valued around 112k.

how accurate is this?  if i decide to cash out refi, is this what the bank's appraiser will approx appraise it at?

thanks in advance

Chris Mason · Answer

Look for other properties that check the CCCR boxes, and what those sold for.

Close, comparable, closed, and recent.

If it's a recent sale, as @Russell Brazil indicates, an appraiser could very well treat the property as its own comp.

Russell Brazil · Answer

When did you buy the property? If it was within the last 6 months...then the #1 comparable sale for your propery is the actual sale of your property. So it will be worth exactly what you paid for it.

Chris Mason · Answer

Worthless number. When the CEO of Zillow sold his home, it sold for 40% less than his own Zillow estimate on his own personal home.

Doug Roulo · Answer

I had my home appraised just this week...and Zillow is $10,000 over appraisal.  2.5% in my case.

Caleb Jordan · Answer

@Gil Pang I sold one property where Zillow was 7k below what it sold for, I sold another where Zillow was only off by $1,000. But if you really want know the worth get with a local realtor.

Daniel Kong · Answer

Zillow never lies!!!! =P

Haha nah, best bet is to work with a local Realtor. He/she will give you a much better estimate of what the property will be worth.

Brandon Carriere · Answer

Zillow is typically not accurate..  Its based on some fancy algorithm and obviously doesnt take into consideration the interior of the home..

Philip Coiro · Answer

Not a good number to go by. I have never found it to be very accurate but for fun I just looked up my house because we just had it appraised last week when we opened a HELOC and I was surprised at how close it was, Zillow has it just $27,000 under our appraisal, 6% off! Not too bad! It's better to use the recent home sales in the past 3-6 months filter and find comps that way.

Gil Pang · Answer

@Russell Brazil i bought it a little over 1 year ago

Gil Pang · Answer

@Chris Mason guess its just a marketing gimmick for them.  what is the best way to asses the value before i decide to refi cash out and pay an appraisal fee?

How accurate is zillow home value?

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