So, just how accurate is the Zillow “Zestimate” anyway?

Thanks to appraiser Tom Horn for this Most Interesting video!

Have you ever wondered how accurate the Zillow “Zestimate” really is? Whenever I am doing appraisals I have homeowners tell me what their Zillow “Zestimate” is. I am sure they are hoping that my appraisal is similar to that number (if it is high), however the two could be close, but more times that not they are pretty far apart.

I actually just found out recently how you can determine the accuracy of Zillow in your area. Take a look at the video to learn how.

click here to see the original blog posting

1-1 GOOD AT final rev newslet

29 responses

  1. Consumers want the fast and easy method to value real estate; however real property by nature is heterogeneous. The broad forces of value are constantly in flux. Depreciation and improvements which enhance or detract from a subject properties effective age and thus its value cannot be analyzed with an algorithm such as a Zestimate. In effect, appraisers are needed to accurately appraise properties, like it or not.

  2. Zillow gets locations wrong. Zillow is based on Sq ft not condition. Zillow does almost nothing to address comments. It does not remove poor content when requested. I am interested in a class action law suit to make them go away. Anyone else?

  3. Amazing! I corrected Zillow data. Square footage is TWICE their numbers and there is more bedrooms and baths. SO, they DECREASED the value in under 12 hours! There is a scam somewhere. If I ever pay them an advertising fee, please shoot me.

  4. […] So, just how accurate is the Zillow “Zestimate” anyway? […]

  5. My watch is broken but it is accurate twice a day!

    1. I still haven’t changed one of my clocks to daylight savings time to remind me of the hour that I still miss!!

  6. Again, why are we even discussing accuracy and appraisal in the same sentence? But, how can anyone possibly measure accuracy in appraising anyway? Appraisal has nothing to do with accuracy except for the facts that are employed in analysis. But I guess if appraisers start believing accuracy has currency then pretty soon our regulators will require us to be accurate as well.

    The reason that Zillow will not be regulated is the same as the reason that brokers and bankers can perform valuations without regulation. The larger universe of valuations of which appraising is the focus of USPAP is specifically exempt from oversight. Zillow is in the larger universe and Zestimates are therefore exempt from even making any sense at all. Only someone that can follow that logic will understand that Zillow and the larger universe of valuations can be and are as inaccurate as the circumstances may require.

    While writing your congressman please include a comment that appraisers remain exempt from this crazy aspiration of accuracy.

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