How Accurate is Zillow?
In the Business section of the Seattle Times for February 8, 2015, I read a very interesting article written by Kenneth R. Harney. He examined the accuracy of Zillow Zestimates on homes in several areas of the U.S.
When I talk to someone about real estate, I hear, “Zillow says my house is worth….” in almost every conversation. It is about time someone other than myself speaks out about this “bane of the real estate market.” Kenneth R. Harney did so.
“In New York County the median error rate is 19.9%. In Brooklyn it is 12.9%. Here in King County the error rate is 7.1%.”
Some real estate agents have examined the selling price of homes and the Zillow estimate and found startling results. In Charlottesville, Virginia, they found that of 21 homes sold, 17 were sold for more than the estimates by Zillow. Two houses sold for 61% below the Zillow estimate. In Carlsbad, California, a real estate agent found that 70% of the time, properties sold for more than the estimate by Zillow, with the largest disparity as high as $70,000.
To get a good estimate of the value of your home you should rely on your local real estate professional or an appraiser.
If you are interested in knowing what your home is worth in today’s real estate market, contact me for a free market analysis of your home. My information can be found on the contact page of this web site.