JUST HOW ACCURATE IS THAT ZESTIMATE?
The consumer loves the Zestimate and the real estate agent hates it. Why the disparity? A good clue came from a recent interview with Zillow’s chief executive, Spencer Rascoff by Norah O’Donnell, co-host of CBS “This Morning”.
- The median error rate of the Zestimate is 8% nationally, and as bad as that is, some local error rates are staggering:
- The Manhattan median valuation error rate is 19.9%
- The Somerset County Maryland error rate is 42%
- The San Francisco error rate is 11.6%
- In July, an agent, Robert Ear examined selling prices and Zestimates of all 21 homes sold that month in Lake Monticello, VA. On 17 of the 21, Zillow overestimated values and 2 sold for 61% below the Zestimate.
- A knowledgeable local agent establishes price by comparable area sales and by additional factors such as location, condition, upgrades, competing properties and market conditions.