Zillow's accuracy

[Missouri Bob]

I looked at Zillow's valuation of my house, and was surprised at their assessment of its worth: roughly 1/3 more than what the local realtors have quoted. In defense of said realtors, the numbers they have provided are similar to what other properties in the area have brought. "Comps" are difficult in this situation because there are no comparable properties in the area.

 

How accurate is Zillow?

 

Thanks.

 

Bob

Edited December 6, 2016 by Bob_Sheehan

[greiffster]

Based on what I've seen over the years with our new home sales as well as our realtor team's assessment of the existing home market, the Zillow valuation is mostly useless.

[The Rocketman]

I've been a Realtor for 25 years this December. Do not pay any attention to Zillow's estimates. It would take many hours to explain why their models and calculations are far distant from reality. Trust me, your local Realtor will give you a much more accurate assessment of the value of your home than Zillow ever could, or will. Zillow is OK for general, ball-park ideas, but off by a substantial margin (high or low) for buyers and sellers to use accurately.

Edited December 6, 2016 by The Rocketman

[The Rocketman]

Read this from Zillow about corrections made in 2016 to their algorithm to lower their median error rate from 8% to 6%. Even a Realtor can be off by that much easily based on lots of factors, but I still think local Realtors know value best.

 

http://www.housingwire.com/articles/37229-zillow-we-just-dramatically-improved-zestimate-accuracy

[Missouri Bob]

Thanks.

 

My initial reaction upon seeing Zillow's valuation was cautious optimism. I'll continue to watch local selling prices.

 

Bob

 

[greiffster]

Bob,

When you enter your house address into Zillow, are the stats on your house (ie, SF, # of bedrooms, baths, garage, lot size, etc.) correct? That might be the biggest issue. The stats on my house aren't even close? They are not what is recorded in the tax records? Given the value of you house is very dependent on these numbers (mostly SF), how can they claim any kind of accuracy?

[Missouri Bob]

The stats (SF, bedrooms, baths) are correct, but the acreage shows me as having 2.5 acres fewer than I own. And the estimated price is roughly 1/3 higher than what I've been told. Go figure.

 

Bob

[graydude]

I've been a Realtor for 25 years this December. Do not pay any attention to Zillow's estimates. It would take many hours to explain why their models and calculations are far distant from reality. Trust me, your local Realtor will give you a much more accurate assessment of the value of your home than Zillow ever could, or will. Zillow is OK for general, ball-park ideas, but off by a substantial margin (high or low) for buyers and sellers to use accurately.

 

+1 Zillow is useless. Broker since 1989. One of my biggest challenges is meeting folks who have looked at Zillow first and then I bring them to reality. Usually I won't get the listing because I won't take an overpriced home but in our industry, you will always find a realtor who will list at the sellers Zillow fabricated price and never sells. Best advice is work with a Realtor with not less than 10 years experience. Rookies will sound enthusiastic but there is never any replacement for experience.

[Bud]

I've been a Realtor for 25 years this December. Do not pay any attention to Zillow's estimates. It would take many hours to explain why their models and calculations are far distant from reality. Trust me, your local Realtor will give you a much more accurate assessment of the value of your home than Zillow ever could, or will. Zillow is OK for general, ball-park ideas, but off by a substantial margin (high or low) for buyers and sellers to use accurately.

 

+1 Zillow is useless. Broker since 1989. One of my biggest challenges is meeting folks who have looked at Zillow first and then I bring them to reality. Usually I won't get the listing because I won't take an overpriced home but in our industry, you will always find a realtor who will list at the sellers Zillow fabricated price and never sells. Best advice is work with a Realtor with not less than 10 years experience. Rookies will sound enthusiastic but there is never any replacement for experience.

 

So I gotta ask: From 89 to 99 did you have any clients?

[Mike]

We're about to put our townhouse on the market. Si VW we're ina development of 67 homes, it's easy to get comps. The Zillow values are way off.

 

As we've been looking at other homes, it's the same story. Some neighborhoods are inexplicably over the realistic value, while others are low.

[Gregori]

Zillow "zestimates" are mostly garbage. Even THEY know this.

 

One of MANY articles describing the fact that the Zillow CEO sold his house at 60% of the "zestimate": There is nothing wrong with Zestimates, unless you want to know what your home is worth.

 

I've actually met Zillow CEO Spencer Rascoff - he's a nice enough guy, and he'll readily admit the algorithms they use are rough, at best. They're constantly trying to improve them, but even he knows that technology is a long way from replacing an experienced, professional real estate agent.

 

 

[The Rocketman]

technology is a long way from replacing an experienced, professional real estate agent

That's what keeps my bikes' gas tanks full, thank goodness

[tallman]

Two house sold on our cul-de-sac.

Zillow was 3-4% higher than actual selling price.

Maybe it depends, not my forte.

[Gregori]

Tim - If Z was always 3-4% high, it would at least be consistent.

The problem lies in the fact that sometimes they're 4% high, and other times 50% high. (Or low - I've seen it go both ways.)

The worst case I've personally seen was over 100% too high. That's right - Zillow had a number on a house (not a tear down) that was actively for sale for HALF the zestimate - and still not selling.

 

On AVERAGE, they're not TOO far off, but it's impossible to know on a case-by-case which way, and by how much.

 

I liken Zillow to the two statisticians who went deer hunting:

One shot 10 ft to the left of the deer, the other shot ten feet to the right - "WE GOT IT" they yelled.

[tallman]

Yes.

I was just adding data.

Wonder if there is a regional difference?