Zillow is inaccurate for home values but you might be surprised by how much

Video transcript

It’s no surprise that AVMs (automated valuation models) like Zestimates are inaccurate, but you might be surprised by how much they’re off.

Sellers are always like:

“But Zillow says my home is worth more than that!”

Well, I recently did a CMA for a seller and just for fun I pulled AVMs from Redfin, Realtor.com, and Zillow.

As you can see there’s almost a $100,000 discrepancy among the three.

And none of these numbers hit exactly where my research valued the home.

AVMs don’t understand the intricacies of neighborhoods.

And they have no way of factoring in the condition, style or finishes within your home when comparing to other properties.

Zillow’s website even states that there’s a median error of 9.9% in New York.

10% on a $500,000 home is a $50,000 risk.

And only 27.9% of Zestimates are within 5% of an actual sale price.

Those aren’t great odds.

To get the most accurate current market value for your home your best bet is to hire a real estate professional.

Either a realtor or an appraiser someone who understands your neighborhood and who knows the interior specs of homes similar to yours.

And who can analyze the differences.