Zestimate Accuracy – Wack!
Did you notice that the zestimate wasn’t listed in the Real Estate Online Tools?
It is wackier than ever!
Last year, we saw the zestimate be hundreds of thousands of dollars too high on a custom home west of the I-5 in Leucadia – and once I inputted the listing on Zillow, their zestimate went higher:
They claim to always be improving their algorithms, but this new example is hard to explain. On my latest listing in a very normal tract neighborhood in NE Carlsbad, I gave them the benefit of the doubt. I just sold the exact same model for $810,000 in December, but maybe they are slow to update? The zestimate of my new listing was $744,222:
But once I inputted the listing on Zillow last Friday, the zestimate zoomed to $851,243!
Does it mean that Zillow has finally jumped on the bandwagon and are supporting their Premier Agents with zestimates that come in around the list prices!!! If their primary concern was placating their paying customers, the Premier Agents, this would be a good way to do it!
Here is today’s zestimate – back where we started, with 5s instead of 2s – how can it fluctuate up and down 14% over five days??
I guess when you look at a zestimate, you can only hope you are looking on the right day! 14% swings over 5 days? Could it be any more unpredictable?