Trying to find the accuracy of Zillow’s “Zestimate” is like finding a needle in a hay stack if you don’t know where to look. A “Zestimate” is Zillow’s estimated home valuation tool that is determined using their proprietary formula.
Armed with the knowledge of how inaccurate Zestimates are in your area could help you decide whether or not you should trust the number that it provides. Unfortunately, too many of us have become accustomed to turning to the internet to find answers to our questions and have become too trusting of what we find.
Recently, a home seller had a difficult time selling their home when the controversial “Zestimate” tool undervalued their home and resulted in their home taking longer to sell than they would have liked. As a result of many incidents like this Zillow is now facing a lawsuit because of their highly inaccurate tool.
A small inaccuracy may not seem like much but when you break down the numbers it could be costing you more than you think. As you can see below, the averages across the nation vary. In New Jersey, the margin of error rate is nearly 6% and within 5% of the sale price less than half of the time.
Don’t expect Zillow.com to make it easy for you to find the margin of error rate on your home’s Zestimate. Here’s what you need to know to find it. Once you are on their website you want to scroll all the way down to the bottom to the small tab that says “Zestimates.” There you will find a great deal of hyperlocal information as well as a FAQ section.
Zillow is quite aware there is a problem with their “Zestimate” tool and is currently offering a $1 million prize to the person or team who can improve their algorithm.
Check it out for yourself! Head over to Zillow.com and find your home’s current Zestimate then we invite you to check out our FREE home valuation tool so you can see what our system says your home is worth. Of course, only a well-trained real estate agent that truly knows the market and has actually seen your house can give you an accurate estimate of your homes current value, we would be happy to do just that, just give us a call at 201-345-7500 to schedule your no obligation consultation. You may be surprised what your home is worth and it may be time to experience the #BestSellingBCHBergenHVomeTeam