Zillow & Zestimates Accuracy

The Zestimate’s accuracy depends on location and the availability of data in an area.  For off-market homes, the median error rate is 7.52%.     Source: Zillow’s website, frequently asked questions, How accurate is the Zestimate?

Let’s think about this for a minute.  Nationwide 7.52% error rate.  If you have a $500,000 home the Zillow Nationwide error rate would equal $37,600.  It could be $37,600 High or low. 

Keep in mind that this is an automated value system that doesn’t consider the condition or location of properties.  Here is an extreme example:  Home 1 has $150,000 worth of recent upgrades plus a pool located on an extra-large cud-de-sac lot and they are comparing to Home 2, a bank owned foreclosure located on a main street that has been vandalized with roof damage plus the electric and plumbing ripped out.  The Zestimate is going to have a huge error rate in this example.

On the other hand, if there is 10 homes that recently sold in the same neighborhood and all of them were similar in condition, size and location then the Zestimate may be pretty accurate. 

This is why should never rely on automated value systems.  We advise having a Realtor (Us) show you supporting comparable sold, pending and listed properties and give you their opinion of value along with the supporting data.