How Accurate is Online Pricing?
Master Logo.png

How Accurate is Online Pricing?

When we saw the news that Spencer Rascoff, the CEO of Zillow, sold his home in Seattle for $650,000 under its Zestimate, we decided to do some digging and test out the most reputable online pricing estimate sites. 

 

Spencer Rascoff's home sold for $1.05M and was estimated by Zillow to be worth $1.575M (via Zillow.com).

 

 

 

In order to test them, we first ran our standard pricing analysis for a home that we were familiar with. We looked to recent sales comps (three identical models that sold for $779,100 and $770,000 and $752,500) and then looked at the active listings comps (three identical models listed for $869,000, $869,00 and $819,000).

 

 

              Sold: $779,100                                    Sold: $770,000                                    Sold: $752,500

               Sold: $869,000                                  Sold: $869,000                                    Sold: $819,000

 

 

After obtaining pricing, we figured we would see online estimates between $750K and $870K.  However, given the disclosures regarding pricing accuracy, we should have known what we were in for. 

 

 

 (via Zillow.com)

 

So, how did the online estimates turn out? 8 of 9 weren't even close. Some were up to 30% (over $200K!) less than what we were expecting. 

  • Trulia - $643,000

  • Zillow - $654,120

  • Redfin - $677,729

  • ReMax - $686,500

  • Homesnap - $697,000

  • Chase Bank - $706,000

  • Bank of America - $708,543

  • Realtor.com - $709,478

  • HouseCanary - $845,800

 

 

Want our advice? The next time you are looking to value a property, find a local expert. Even Zillow's CEO will tell you that there is no substitute for seeking guidance from the pros.

 

If you're thinking of selling, don't let Zillow's price estimates give a buyer the upper hand - contact us to find out how you can improve the accuracy of your "Zestimate" in under 15 minutes.

 

You can also learn more about how to increase your Zestimate, here.

 

 

Please reload

RECENT POSTS

Please reload

Working Coffee

FEATURED

Please reload

STAY UP TO DATE

Get newsletters with strategies, alerts, and more

INDUSTRY 
INSIGHT