Updated over 5 years ago on . Most recent reply
Zillow for actual home prices
So my I browse a lot on Zillow and always see some ridiculous prices but then other prices very good. But I was just wondering about the zestimate and what they think the homes price should be are these accurate in any way. Does anyone know what they are based off or just educated guesses?
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@Daniel Lozano Zestimates are a bad joke. In my opinion, bad information is worse than no information.
If you drill down on their website, you can find a statement of accuracy.
As I recall, the greater Boston market (where I practiced for years) was something like "within 10% of the actual value 80% of the time". Back then, the median price in Plymouth County was $550,000 (Boston was even higher so errors were even worse).
That means that in Plymouth County, the Zestimate was within $110,000 80% of the time. 20% of the time, the error was GREATER than $110,000. That is a truly useless number.
The basic problem is the Zillow's algorithm isn't capable of analyzing interior conditions or local (down to the street level) market conditions. Those are two critical elements to understanding the value of a home.
If you want accurate comps, find a Realtor *with experience in that neighborhood* who is willing to help. Be sure to treat them right though. If you have them do the work and then go around them to make an offer, don't expect their help in the future.