Zestimates Are Not Accurate

Dated: 04/07/2016

Views: 847

Home value estimates on Zillow - or "Zestimates" - are not very accurate. This is according to the CEO of Zillow Spencer Rascoff. In this interview he admits that nationwide Zestimates have a margin of error of 8%. On a $300,000 house, that's $24,000 dollars - or in other words - a good chunk of change. 

Remember, that's the nationwide average margin of error. Meaning that some areas are better and some are worse. Spoiler alert, Idaho is a non-disclosure state, which means that sale prices do not appear on the public record, therefore sites that aggregate data - like Zillow, are working from a very incomplete set of information. Really they can only go on user reported data to get sold info. 

What that means to you is that if you want to get an accurate idea of what your home is worth on the market, you should probably speak to a Realtor® who can access the MLS, which does house the vast majority of information on sold homes. Even it doesn't have everything, like private party sales, like For Sale By Owner. But it does have enough to build a likely profile of what your home would sell for in the current market based on past sales and current offerings. 

So, again, Zestimates bad, Realtor® CMA good (assuming you have a competent agent. Which is another topic.) Talk with you soon!

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Gavin McCaleb

Gavin has lived in Boise for over 20 years. In 2003 he got his start in real estate as an investor and since then he has personally bought and sold over 100 houses. He got licensed in 2009 and is now....

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