News Archive: Ask the Professional - What is Zillow and is it accurate?

For Immediate Release:
January 08, 2010

BRAD GAI, Audit Stockholder
bgai@rina.com • 925-210-2180
1220 Oakland Blvd., Suite 300
Walnut Creek, CA 94596 • www.rina.com

Q. What is Zillow and is it accurate?

A. Many readers are familiar with Zillow.com. You can search for property and fi nd an “estimate” of value, known as a Zestimate. There is a persuasive credibility when a dollar value is listed on the screen. The Zillow web site provides an explanation of the Zestimate and how they determine the values. The web site warns the reader that the Zestimate is not an appraisal. The web site provides a table showing how the Zestimate relates to actual sales prices for properties that have sold. The Zestimate is within 5% of the sale price 23.5% of the time. The percentage improves to 42.2% if the accuracy measure is 10%. Most of the Zestimates (57.8%) were off more than 10%. Enjoy the Zillow web site but understand its limitations. Read the information at Zillow FAQs under the Advice tab on the home page.