How accurate are Zillow estimates?
Zillow bases its ‘Zestimates’ on an algorithm that takes information from public records and weighs each piece of data based on current trends in your area. The problem is that it can’t take into account many variables that determine value, such as:
- View – A mountain, pool, or city view can add significant value.
- Exposure – Lots of warm Arizona light or limited, northern exposure?
- Condition – Move in ready or is significant work needed?
- Upgrades – New hardwood floors? Remodeled kitchen?
- Floor level – A top floor unit (Penthouse) commands a premium; a first floor unit is usually discounted unless it has a terrace and access to amenities.
- Rent ratios
For the Phoenix, AZ metro area, Zillow claims that 71% of its Zestimates are within 10% of the sales price. In other words, for a $200,000 property, you have a 29% chance of being off by $20,000 or more!
For a much more accurate and timely estimate of your property’s value, request a Free, no obligation Comparative Market Annalysis here.