The Truth About Zillow and Redfin Estimates: How Accurate Are They?
Filed under: Real Estate Market
In today’s video, I am covering a topic that I often talk to clients about: how accurate is my Zillow or Redfin estimate online?
In general, they are within 10% up or down of the real value of your property.
An Interesting Observation in Recent Years
But there is an anomaly that I have noticed over the last couple of years that is really interesting: any time I list a property, the Zillow and Redfin values automatically snap to the list price.
Meaning: no matter what they have deemed the property to be worth, the number is thrown out the window and they say the home is worth the list price based on whatever number the Realtor puts when the listing is going on the MLS.
I have a few problems with this because I think that they are not giving you an independent value. At this point, they are just going off of someone else’s information, and there is no quality check on that information.
So, why would they do something like that? It improves their predictability accuracy. They are going to say that they were close to the final sales price, because they know that statistically most homes sell within about 3% of the list price.
They can automatically claim a plus or minus 3% variance rate on their data if they simply snap to the list price.
Want Accurate Information? Talk to Your Realtor
But where is the list price coming from? It’s coming from a Realtor who’s actually doing a full comparable analysis report and giving you a more accurate value.
The message of this whole video: if you are really looking to find out what your home is worth, you should talk to your Realtor. Have them run a proper comparable analysis report. This is going to give you a more accurate representation of the value of your house.
Elite Properties Direct is Here to Help
If you need help determining the value of your property, then my team is always just a phone call away. Call or text me any time: (951) 473-0390 or [email protected]