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Their algorithms can only rely on the information available; they can’t account for things like a home’s condition or renovations made since the last public information was updated. These personalized assessments of a property’s fair market value will very likely be more accurate than an automated website’s. Zillow acquires data from tax assessor and county records, real estate brokerages, and multiple listing services (MLS).
Other methods of home valuation
To compare each estimator tool below, we’ll use the same example property and run it through each tool to see how the results compare. Checking a home valuation tool periodically can be helpful even if you’re not thinking of selling. It’s a question every homeowner wants to know the answer to, especially if you’re thinking about selling. It’s not possible to manually alter the Zestimate for a specific property. This allows you to see how a home (or an area) has changed in value over time. Stay up to date on market changes and find out how much homes like yours have sold in the past year.
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How can real estate professionals work with the Zestimate?
Once you enter the home’s address, you’ll have to answer a few questions, such as whether you own the home in question and details of your ownership and its sales history. When the search completes, you’ll have the chance to create an account, and only then will you be able to see the estimate. There are no guarantees that you’ll sell for the amount you see, but the results can give you a solid ballpark idea of your home’s approximate value.
Find an agent to sell your home
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service. While these tools can be a useful starting point, they may not provide the most accurate pricing.
Bankrate
If all the homes within a six-block radius are very similar to each other, a Zillow estimate will be much more accurate, perhaps within 10%, because there are not enough specific variances to throw it off. In other cases, such as for older neighborhoods with many homes that have been improved in different ways, it won't be that close at all. To do this, they'll conduct a walk-through, comparing the house's features against a checklist. They'll look for visible defects, but they won't look for potential issues in the same way as a home inspector would.
Review Your Home’s Tax History and Sales Prices
With either the Redfin Estimate or the Zillow Zestimate, the estimated value of any given home is only as accurate as the available data. If your home has additions or renovations that don’t show up in the data, then its estimated value will not reflect those changes. Neither Zillow’s Zestimate nor the Redfin Estimate is designed to replace or serve as an appraisal. The estimates are calculated by a computer based on available data and are not the same as a professional appraisal. Redfin only offers estimates for homes in areas where similar properties have sold within the past year.
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When an agent assesses a property, typically they begin by studying it from an overhead, satellite view on Google. They note whether it backs up to a busy street, the proximity to commercial property or freeways, the size of other homes nearby, the vegetation and landscaping, and its orientation to the sun. If available, they will view any photos of the exterior plus a street scene. For example, knowing about how much your home has appreciated in value can help you determine how much equity you’ve built or whether you’re being overcharged for property taxes. If you see two Zestimates for the same property, please let us know by visiting Zillow Help Center and selecting Submit a request.
Update Your Home Facts
However, a Zillow home value is not an appraisal and may not take into account all the data necessary to make it as accurate as possible. Online real estate platform Ownerly offers a home value estimator, but you must set up an account — and pay for a subscription. However, you can sign up for a seven-day trial membership for $1 or a premium trial for $5.
Using a home value tool
Typically, this costs several hundred dollars and is paid for by the buyer. In some parts of the country, we may have basic information on some homes — but not enough information about enough homes to compute a Zestimate.
The offers that appear on this site are from companies that compensate us. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. Both companies claim they are highly accurate, with a median error rate of 2.28% for on-market homes for Redfin and a 1.9% error rate for Zillow as of this writing.
This means that the Zestimates for half of all on-market homes are within 2% of the selling price, and half are not. For most major markets, the Zestimate for on-market homes is within 10% of the final sale price more than 95% of the time. The first thing to understand is how Zillow arrives at a Zestimate, its name for a home value estimate. According to the site, Zestimates are based on a proprietary algorithm that incorporates public records and user-submitted data.
This is the percentage of transactions for which the Zestimate was within 5% of the transaction price. If your home is not currently for sale, you can update facts about it online for both Redfin and Zillow. The sites will ask verification questions before you can update the information. To date, Zillow has issued Zestimates for more than 100 million homes across the country.
To calculate the Redfin Estimate, we combine hundreds of data points about the market, the neighborhood, and the home itself—all to provide you with the most accurate home-valuation tools. One property is two houses on a lot in Midtown Sacramento, located on a busy street near the railroad tracks and close to freeway noise, across from a commercial property. Zillow estimated the value of that home at $380,733, but it sold at $349,000, after almost six months on the market with plenty of exposure. At least for now, Zillow can't predict how a buyer will feel when they enter a home.
A wider range generally indicates a more uncertain Zestimate, which might be the result of unique home factors or less data available for the region or that particular home. It’s important to consider the size of the Estimated Sale Range because it offers important context about the Zestimate’s anticipated accuracy. The Zestimate is designed to be a neutral estimate of the fair market value of a home, based on publicly available and user-submitted data. Bankrate’s easy-to-use home value estimator requires only your street address.
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