Is Zillow zestimate really that inaccurat?

Question

I am new to real estate investing, so I am a spurge that keeps soaking up water. One of the things I keep hearing as a new investor is to never go of Zillow zestimate. So am I wrong for using it to help me get a estimate of the property?

Jonathan Bombaci · Answer

I post this every Christmas.

Jason Regan · Answer

Zillow actually posts how inaccurate they are. I used their numbers to do a youtube video at one point. Just google zestimate accuracy and you will see the Zillow link that breaks it down by different areas.

Hiram Lopez · Answer

Thanks everyone for your input and feedback on this matter. This is also helping me developing new skills and obtaining new knowledge.

Levi T. · Answer

It's hit or miss, just depends the region, but keep in mind that Zillow now makes iBuyer offers based on their own Zestimate. The more transactions they have in a region the better it gets. Frankly even a fully licensed appraiser is only so good. I have more than a decade in this business, and the range of values is worth a grain of salt. I have seen two separate appraisers go to the same property, in the same condition, and both come back almost 40% apart on the value, but when it comes to banks needing some type of proof of value, and the fact that most people only buy one or two homes in their lifetime, they just want someone to be able to tell them they are not overpaying. End of the day, if the seller thinks their shack is worth pie in the sky, then that is their opinion, and no one can convince them otherwise. Half the job is having dozens of people tell you they have a house is worth market or higher, while your trying to get it at half the value, so you can fix it up and bring it to true market value, with a little extra equity on the backend for the win. Prices are fluid, and a house is only worth what someone is willing to buy it for in the moment.

Zachary Beach · Answer

@Hiram Lopez let’s put it this way I have seen them change by over 120K in one day for a property. Like someone mentioned it don’t account for condition. For houses that need a rehab it’s almost always high and for rehabbed houses it’s almost always low at least in my area.

Matthew Irish-Jones · Answer

@Hiram Lopez it’s fairly accurate but more details are needed to give proper comps. It can be used as a general guide on most homes.

Chris Ichter · Answer

@Hiram Lopez in my immediate area the estimates are very very close to sale price even with the crazy market

Charlie MacPherson · Answer

@Hiram Lopez You're correct that you can sell any house that you already own - but that's not wholesaling.

Jonathan R McLaughlin · Answer

like all algorithms the more data it has the better it gets, so neighborhoods with lots of comps and similar houses get closer estimates. But the algorithm draws macro data and any one particular house is micro so its pretty limited usefulness even at its best. If you are looking at zestimates just look at the sold prices you get hard data.

Aj Parikh · Answer

I try to do a street view and try and to get the list price on the next 2 properties and that will give me a good idea of what my property is worth. Also, exploring the sold properties on zillow is also a technique I saw an investor use on youtube.

Is Zillow zestimate really that inaccurat?

Is Zillow zestimate really that inaccurat?

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