I’m frequently asked by both home sellers and home buyers what my thoughts are on Zillow’s Zestimate. Zestimate has certainly seen its share of debate on both sides of the fence, and it seems both sides are adamant about justifying their buying/selling decision based on an algorithm created by Zillow. Nobody except Zillow seems to know exactly “how” they generate these Zestimate, but buyers and sellers are willing to lose a sale of a home over it.
So I decided to do a fun analysis of some sold listings vs. what Zillow’s Zestimate says that same property is “worth.” (I used San Gabriel and San Marino in this example, but you can choose any areas.)
How Accurate is Your Zestimate?
As you can see from this chart, there’s really no rhyme or reason or even a way to analyze this data or trend as it’s pretty much all over the place. Would you consider this an acceptable level of discrepancies?
I personally think Zestimate is a good starting point of discussion between a professional Realtor and our clients. Better we as agents understand how Zestimate is calculated by Zillow, better we can have smarter dialogue with our clients. A person might use a WebMD to look up symptoms, but they still consult their doctor if they want a truly accurate diagnosis. It’s the same using only a Zestimate to price a home.
At the end of the day, Zestimate is what it says it is…just an estimate. Zestimate is NOT an appraisal. Consult a local professional Realtor if you want to get the most accurate figure as we understand that selling a home is not just about an algorithm but the neighborhood, Feng-Shui, amenities, dreams and the overall appeal.
Curious about the value of your home? CLICK HERE. Find out how accurate your Zestimate is TODAY!