How accurate are Zestimates?
Zillow says Zestimates currently have a median error rate of 8%. That may seem to be a large margin — but it has improved. The algorithm began with a 13.6% median error rate in 2006, according to Zillow.
They no longer have to go to a real estate agent for every little bit of knowledge. The problem is, the estimates – or “Zestimates” as Zillow calls them – are not always accurate. In fact, they can be wildly off, leaving the buyer or seller worse off than before they looked at them.
Instead of searching for properties on these websites, home buyer and seller should focus on local brokerage based websites, establish relationships with local real estate agents they trust. These steps will assure that you are getting the most accurate and up to date information in your local real estate market.
Zillow is a useful too, but it does not provide enough accuracy on home prices to be used exclusively. Reach out to a local real estate agent that knows the community that you live and who know the local market.