How accurate are automated home values from website like Zillow and Trulia?
Published On: December 28, 2015 Posted by: Brad
Not Very, they typically miss the mark by thousands of dollars.
Here what Zillow says on it on website” “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. 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, getting an appraisal from a professional appraiser, visiting the house (whenever possible)
Nationally, the Zestimate has a median error rate of 7.9%, which means half of the Zestimates in an area are closer than the error percentage and half are farther off. For example, in Tampa, Zestimates for half of the homes are within 8.5% of the selling price, and half are off by more than 8.5%.”