Ask the Think Team. Are Zestimates Accurate?
Zillow lists home values for homes not on the market called Zestimates. Are they accurate?
Over the last 10 years, the real estate market has been forever changed by the accessibility of the internet. Buyers are able to peruse and virtually tour homes without leaving home. Sites like Zillow offer potential buyers and seller's loads of information including photos, neighborhood info and home prices. They assign a value to every home using an "automated valuation model" or AVM. This technology takes in an enormous amount of public information and uses algorithms to predict home values. It is an amazing feat of technology and also wildly inaccurate.
Zillow claims a median error rate of 8% nationwide, 10% in Los Angeles and some cities are finding much larger disparities. Does this mean you should not use Zillow? Not at all, Zillow is a leader in the arena for good reason. They offer a quick painless starting point for home searches and valuations. Once you are ready for a complete and accurate home valuation or to begin a home search, give us call and we can help with that next step.