Debbie Murphy, ePRO, SFR
Real Estate Marketing Specialist

HOW ACCURATE IS ZILLOW'S ZESTIMATE FOR ST. LOUIS HOMES?

WHAT IS A ZESTIMATE?

Some facts about Zestimate from Zillow's Website.
  1. Zestimate is a computer-generated estimate of the value of a home using currently available public data.
  2. It is not an appraisal.
  3. It is not offered “as the basis of any specific real-estate-related financial transaction.”
  4. Data sources may be incomplete or incorrect.
  5. Specific homes have not been physically inspected.
  6. Market intricacies that determine the actual price a home will sell for have not been considered in a Zestimate.
  7. When is comes to unique or structurally remodelled homes Zestimates are less accurate.

The Zestimate’s margin of error is disclosed for every home value on Zillow.com. Zestimates are calculated using an algorithm and data currently available on public websites. The calculated estimate of value cannot be a definitive valuation of a home’s value since the data Zillow uses is incomplete.

ZILLOW'S ACCURACY IN THE ST. LOUIS AREA
Several years ago, Zillow reported their Zestimate was within 20% of St. Louis home sales prices for 75% of homes sold. Now Zillow no longer reports the degree of accuracy for Zestimates in St. Louis.

SHOULD SELLERS OR BUYERS USE A ZESTIMATE AS A BASIS FOR A HOME'S VALUE?
Zillow’s Zestimate is an AVM (automated valuation model) that uses a very sophisticated algorithm to scrub an enormous amount of information from publicly available sources to predict home values. The only problem is that the predicted values are often wildly inaccurate and provide inconsistent home value advice to buyers and sellers.

No algorithm can combine one-the-ground knowledge of specific homes, neighborhoods or market condition in a local area to determine an accurate value.

The following chart can be found on http://www.zillow.com/zestimate/#acc

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Debbie Murphy | Red Key Realty Leaders | 10333 Clayton Road | St. Louis, MO 63131
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