What's my home worth?

Agent Sourced Values vs Zillow

Here is a selection of a few properties that agents have estimated vs Zillow.

Agents independently all said that Zillow was low.

12048 Eastglen St, San Diego CA 92131

Agent Values: $630k  $639k  $650k  $654k

Zillow Zestimate: $626k

In this case, the Zillow value could also be considered another estimate that an agent would have given.  The average of the 4 agents who responded is $642,500 or about 3% more than Zillow.  One interesting thing is that the homeowner submitted no notes or pictures, other than the google street view picture.  Despite this limited information, and that the agents couldn’t see the other agents estimates, the agents all agreed that the Zillow Zestimate was low.

Agents were even more in agreement Zillow was low

7407 Woodnettle Ln, Houston, TX 77086

Agent Values: $130k  $132k  $136k $140k

Zillow Zestimate: $120k

In this example, Zillow is 12.5% off the median value of agents.  While Zillow claims they are within 8% of the actual value 50% of the time, in this case, there were outside their 8% median error.  The homeowner did not include pictures, but did give substantial notes, which the Zillow algorithm doesn’t know about or have a way to include in its estimate.

Zillow’s estimate was high on this house

10110 Cherry Hills Ave, Bradenton FL 34202

Agents $510k  $539k

Zillow Zestimate: $572k

Zillow was high on this estimate.  Despite only two agents responding, they both estimated values much lower than Zillow, in one case more than 10% off the agents estimated value.  The homeowner did provide extensive notes, but no interior pictures.

What we’ve found is that about 40% of the time, the Zillow Zestimate could be also considering another agent estimate of value, but 60% of the time, Zillow’s value is not within a reasonable range of values that agents are coming up with.

Since a value isn’t actually established until a sale takes place, it will take more time to determine how much more accurate the agents are than Zillow, but if the industry median of agents being within 3% of sale price we will vastly outperform Zillow’s automated values.

 

Todd Miller 19 Feb 2017
Bitnami