How Accurate are Zillow and Redfin Estimates?
Filed under: Home Tips
Today I am talking about a topic that often comes up when I am in conversation with clients: how accurate is my Zillow or Redfin estimate?
In general, these numbers are within 10% (up or down). But I have noticed an anomaly in the last couple of years that is very interesting: any time I list a property, the Zillow and Redfin values automatically snap to the listing price. Meaning: no matter what they have deemed the property to be worth, that number is thrown out the window and the new list price is updated (based on what the Realtor lists on the MLS).
Why This is a Problem
I have a few problems with this because I think that they are not giving you an independent value at that point. They are just going off someone else’s information. There is no quality check on that information.
Why would they do something like that? It proves their predictability accuracy. Adjusting to the listing price means that they can claim accuracy because it is a close number to the final sales price. They know that statistically, most homes sell within about 3% of the listing price.
They can automatically claim a +/- 3% variance on their data if they simply snap to the list price.
Realtors Determine a More Accurate Value
But where is the list price coming from? These numbers are coming from a Realtor who is doing a full analysis report and giving you a more accurate value.
So, I think the message of this video is: if you are really looking for information about what your home is worth, you should talk to your Realtor. Have them run a proper comparable analysis report. This information is going to give you a more accurate representation of the value of your house.
I’m always here if you have questions. If you want to learn more about Temecula real estate to buy or sell a home, then call or text me any time: (951) 473-0390. Or, feel free to email me at [email protected] if you prefer.