How Accurate is Your Zestimate?
see how philly’s zestimates stack up
I just read an interesting article from the L.A. Times about the accuracy, I mean, inaccuracy of Zestimates. Shocking, I know. Obviously, I moseyed on over to the Zillow website to see if I could figure this out. According to Zillow there is a 7.8% median error in Philadelphia. We are considered “Good” with a 3 (out of 4) star rating. (see below)
I have been looking at this backwards, forwards & sideways because the information presented is convoluted &/or missing. I subtracted the totals because I found it confusing how they were added together. I got that 35.8% of homes sold within 5% of the sale price, 23.1% sold within 10% of the sale price & 19.1% sold within 20% of the sale price for a total of 78% of homes within 20%. What I want to know is where are the other 22% of homes that sold in Philadelphia? I am going to go out on a limb & say they are “Zestimated” inaccurately by over 20% of the sale price. Otherwise, wouldn’t we be privy to this information?
Let me end with this. Pricing a property is an art. Too high, it sits. Too low, a bidding war ensues & the seller thinks they left money on the table. We love a bidding war but bidding wars can get messy & emotional. They are best handled by experienced agents. The best thing a Realtor can do for you is put together a Comparative Market Analysis. A C.M.A. takes a hyper localized snapshot of the market. What has sold, who your competition is & which homes went under contract recently. THIS & only this is the best way to determine pricing besides having an appraiser come to your home for an independent appraisal. It is not how much your kitchen cost you to renovate, what you want to recoup or, most importantly, what your Zestimate says.