Of the more than 108 million homes currently listed on Zillow, nearly 97 million of them have Zillow Zestimates® calculated. But how accurate are these zestimates?
I get this question a lot from clients. Fortunately, there’s an easy answer as Zillow posts the accuracy rates for its zestimates by state, county and city. But first, what is a Zestimate®?
From Zillow’s site:
The Zestimate® home valuation is Zillow’s estimated market value, computed using a proprietary formula. It is not an appraisal. It is a starting point in determining a home’s value. The Zestimate is calculated from public and user-submitted data, taking into account special features, location, and market conditions.
How Accurate?
Zillow continuously calculates its Zestimate accuracy by comparing the final sale price of a home to its Zestimate on or before the sale date.
Across the U.S. as a whole Zillow’s zestimate accuracy currently has a median error rate of 4.3%. This means half of the estimated home values are within 4.3% of the selling price, and half are off by more than 4.3%.
Drilling down to the state level, for Nevada for example, we find the zestimate’s accuracy improves with a median error rate of 3.0%. Again, this means half of the home values are within 3.0% of the selling price, and half are off by more than 3.0%.
Drilling down even further, to the Washoe County level, we find the zestimate’s median error rate also to be 3.0%. We also see that two-thirds (66.6%) of the time the Zestimate for a home in Washoe County was within 5% of the selling price. And 83.3% of the time the Zestimate was within 10% of the selling price.
Have you recently sold a home in the area? If so, share how accurate Zillow’s zestimate was in the comments below.
More Information
Regardless of the accuracy of the Zillow Zestimate®, keep in mind a zestimate is simply one source (Zillow) of data. In fact, on the Zillow Zestimate Accuracy page, Zillow states: “We encourage buyers, sellers, and homeowners to supplement Zillow’s information by doing other research such as: Getting a comparative market analysis (CMA) from a real estate agent.”
If you would like to learn more about the your home’s worth, contact me; I’m here to help. I can be reached at 775-722-4011. Or, if you prefer, simply fill out this form.
Thank you and make it a great day!
related post: How accurate are Zillow’s Zestimates? (February 23, 2015)
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[…] [Ed. Note: A more recent post on this topic (posted December 26, 2017) can be found here: How Accurate is Zillow’s Zestimate?] […]
How accurate are Zillow’s Zestimates? | Reno Real Estate Blog
[…] [Ed. Note: A more recent post on this topic (posted December 26, 2017) can be found here: How Accurate is Zillow’s Zestimate?] […]
How accurate are Zillow’s Zestimates? | Reno Real Estate Blog
[…] [Ed. Note: A more recent blog post on this topic (published December 26, 2017) can be found here: How Accurate is Zillow’s Zestimate?] […]