How accurate is Zillow “Zestimate”?
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Have you ever wondered how accurate the Zillow “Zestimate” really is? In this video, Tom Horn explains how to determine the accuracy of Zillow in an area.
Zillow has gone back in time to compare their historic Zestimate with what the property actually sold for. They claim that their “estimated market value” is not an appraisal, but in reality an estimate of market value is an appraisal, but it’s one that cannot be used by a bank and one that you may want to think twice about before using to determine a sales price for your home. They provide a range in value which can vary widely. This information is based on public and user submitted data, both of which can vary in accuracy. County records in many states do not reflect newly finished areas or additions where a building permit was not obtained. Zillow explains that the further apart the spread from high to low the less accurate their estimate is. The counties in which various sources of information are available are typically the ones that are the most accurate.