If you’re in the market to buy or sell your home, you may be wondering if Zillow estimates are accurate. According to Zillow, their estimates, known as Zestimates, are within 10 percent of the final sales price for more than 90% of the time in most markets that are surveyed. However, it’s important to note that the median error rate for all homes means that while a majority of houses on the market are within median error against the price of sale, half of them aren’t. Here are some other factors to consider when using Zestimates:
Overall, Zestimates can be a helpful tool when buying or selling a home, but it’s important to keep in mind that they are not a guaranteed reflection of a home’s true value. Consulting with a professional and doing additional research can provide a more accurate understanding of a property’s worth.
How Zillow Estimates Work
Zillow is an online real estate marketplace that provides estimates on the value of properties across the United States. The estimates, known as Zestimates, are based on a proprietary algorithm that takes into account a variety of factors, including location, size, age of the property, recent sales in the area, and other features such as the number of bedrooms and bathrooms. The algorithm also incorporates user-submitted data, such as renovations or upgrades, and uses artificial intelligence and machine learning to continually improve its accuracy.
Understanding Median Error in Zillow Estimates
The median error rate for Zillow estimates is a measure of how accurate the estimates are. In most markets that are surveyed, the Zestimate for homes on the market is within 10 percent of the final sales price for more than 90% of the time. However, the median error rate for all homes means that half of them are not within that 10% range. It is important to note that Zillow estimates are meant to be a starting point for determining a property’s value and should not be relied on as a definitive value.
Accuracy of Zillow Estimates in Different Markets
The accuracy of Zillow estimates can vary depending on the market. In some markets, the estimates may be very accurate, while in others they may be less so. Some factors that can impact accuracy include the availability and accuracy of public records, as well as the level of competition among real estate agents in the area. Additionally, Zillow may not have access to all of the information that is available to a local real estate agent, which can impact the accuracy of their estimates.
Common Factors that Impact Zillow Estimates
Several factors can impact the accuracy of Zillow estimates, including:
- Size of the property
- Age of the property
- Comparable properties in the area
- Market conditions
- Recent renovations or upgrades to the property
It is important to keep these factors in mind when considering a Zestimate.
Benefits and Drawbacks of Relying on Zillow Estimates
There are both benefits and drawbacks to relying on Zillow estimates when researching the value of a property. Some of the benefits include:
- Quick and easy access to estimates on a large number of properties
- Can be helpful in providing a general idea of a property’s value
- Can be used as a starting point for negotiations with a seller or real estate agent
However, there are also drawbacks to relying solely on Zillow estimates, including:
- May not be as accurate as estimates provided by a local real estate agent
- Does not take into account unique features of a property
- May not have access to up-to-date information on properties
It is important to keep these benefits and drawbacks in mind when using Zillow estimates as a resource.
How to Adjust or Improve Your Zestimate
If you are a property owner and you believe that your Zestimate is inaccurate, there are steps you can take to adjust or improve it. One option is to update the information on your property listing, including any recent renovations or upgrades. You can also provide additional information about your property that may not be reflected in public records. Zillow also allows property owners to dispute their Zestimate and submit their own estimate of the property’s value.
Working with a Real Estate Agent vs. Relying on Zillow
While Zillow estimates can be a helpful tool when researching the value of a property, it is important to also work with a local real estate agent. Real estate agents have access to up-to-date information on properties in their area, as well as a deep understanding of local market conditions. They can also provide more accurate estimates on a property’s value, taking into account unique features and recent sales activity in the area.
Other Resources to Use When Researching House Values
In addition to Zillow and real estate agents, there are other resources you can use when researching house values. These include:
- Real estate websites, such as Redfin and Realtor.com
- Public records, including property tax records and sales history
- Local real estate publications and newspapers
- Networking with local real estate professionals
By using a combination of these resources, you can gain a more comprehensive understanding of a property’s value.