How Accurate Is Zestimate by Zillow?

By
Real Estate Appraiser with PahRoo Appraisal & Consultancy
http://actvra.in/CtF

 

So, when was the last time you walked into a listing appointment and after you had presented your educated insight on the client’s property based on years of experience in the local market then heard the client say, “but Zillow says it is worth this”?

  Zestimates: How Accurate Are They? 

  Whether Realtor or Appraiser, this question will continue to come up as more companies are moving to harness vast amounts of data to predict home values.

  So, the next time you need to explain the difference in your Market Analysis of a client’s property and the Zestimate provided by Zillow that your client has asked about, you can go directly to Zillow's site.

  They provide information on how accurate their Zestimates are for each state and county they cover. For example, here in Illinois, in the graphic below, you can see that for Cook County, a Zestimate is only accurate within 5% of the actual sales price 23.8% of the time and within 10% of the sales price only 44.6% of the time.

Zillow Cook County


  So, what does that mean?  It means that less than 25% of the time, they are accurate within 5% of the indicated number.  So ask your prospect / client, do you want to achieve a high degree of accuracy with a level of precision?  Or do you want to trust a computer program that currently achieves a low degree of accuracy with a level of precision?

  If your prospect / client answers the latter, then dump them immediately and move on!

 Check out your county now.


 

Michael Hobbs, PahRoo Appraisal & Consultancy

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Charles Stallions 09/16/2012 06:08 AM
Topic:
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Rainer
175,267
Edward Gilmartin
Boston Homes - Boston, MA
It is hard enough these days to put a value on a home that you spend a few days trying to price.
Jun 14, 2012 04:50 AM #1
Rainmaker
1,500,296
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Short Sale - CDPE, REDS

My initial answer based on experience would have been..."not very"....great information...suggested !

Jun 14, 2012 04:51 AM #2
Rainmaker
854,571
Winston Heverly
Winston Realty, Inc. - Atlantis, FL
GRI, ABR, SFR, CDPE, CIAS, PA

I tell them it is a good source of information to narrow down a criteria, but the real and only information is obtained from us not vice-versa.

Jun 14, 2012 04:52 AM #3
Rainmaker
519,107
Jeanne & Ralph Janisch ABR CRS Brokers
The Durango Home Team at Keller Williams Southwest Associates - Durango, CO
Selling Durango CO homes to good people like you!

We've had clients that were hard to convince what the values in the neighborhoods really are after they browsed Zillow.  Every time their estimate has been wildly inaccurate.  

Jun 14, 2012 06:09 AM #4
Ambassador
643,624
Doug Rogers
Bayou Properties Realty - Pineville, LA
Your Pineville Louisiana Agent

I tell them to call Zillow and offer to sell their home directly to Zillow for 15% less than the Zestimate. If the company believed in their numbers this would be EASY money. My guess is they would politely decline...

Jun 14, 2012 07:57 AM #5
Rainmaker
1,293,702
John Pusa
Sellstate Pacific Realty - Glendale, CA
Your All Time Realtor With Exceptional Service

Michael - Thank you for the information about how accurate is zestimate by Zilliow. Excellent blog.

Sep 16, 2012 09:33 AM #6
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Rainmaker
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Michael Hobbs

SRA, LEED GA, RAA
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