How accurate are the estimates on Zillow?

3 Replies

Hey BP community, quick question: How accurate is Zillow on property values? I'm constantly looking at houses, and I always look at what houses previously sold for. Typically, there is some decent info on the sales history, but I have come across a house in my area that has really intrigued me. Zillow doesn't list any previous sales history, but it has a pretty high "zestimate". In my opinion the asking price on the house is a little high so I feel that there is some room to go down on the offer. I have looked to Zillow to compare prices of houses in the same neighborhood/same street. I have only found one with previous sale price records, and the rest are all "Zestimated" values, and there is a range from 15-50k difference in value. So yeah, any input and opinions on this would be much appreciated. I have over 10 years experience in residential construction/remodeling and I am determined for 2018 to be the year I start REI through flips and/or rental property. BP, thank you!

You should get in contact with a Realtor and have them pull the comps. Zillow can be spot on, or completely off base. I have a property which has a "zestimate" 35% higher than I could ever hope to get it appraised for. It can be used to get ideas of prices, but do your homework after. 

I appreciate the advice, Nick. Thank you!

@Kyle Freed Search the forums, this topic comes up about once a month.  The bottom line is that they aren't accurate.  I wish mine was accurate, I'd probably have another $200K in equity in my house.  Yee haw!  Oh how I wish...wish...wish Zestimates were close to reality.  They aren't.  If you're *not* in a non-disclosure state you're better off ballparking from actual, sold properties.  While it's really hard to know about fit/finish or things of that nature you'll get something a little more accurate (in my opinion) than the Zestimate construct.  

Your best course of action is talking to a realtor familiar with the area.  You'll likely want a buyer's agent anyway if you're going to make an offer and they can pull sold-comps to help you through what their "fair market" estimate would be for the property.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.