How accurate is Zillow?

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Redfin often tout their estimate being more accurate than all others. May want to check out the value there vs Zillow.
 
Way off IMO.  In my neighborhood one home is being sold for 1.7.  Comps over past year from 1.65 to 1.8.

zestimate is 1.43.  Redfin at 1.61.  Not sure how zillow is making these numbers up.
 
They both use algorithmic formulas which factors in recent comps based on square footage. Obviously they do not factor in lot size, view lot, and interior upgrades. It's a cookie cutter estimate which should be used as a very low basis of current home values.
Redfin tends to be slightly more accurate with this algorithmic analysis
 
I saw a house on redfin the other day and it was erroneously listed around 135K when it should have been clearly listed for 1.35M.  Redfin estimated the house at 135k or so (again I forget exact amount)  I always felt, redfin estimates were weighted significantly on list prices as most redfin estimates seem to be around 5-10% under list regardless of house I saw.  I felt this was a good example of it.  Unless redfin estimates take the list price into serious consideration I dont know how a 7 figure out is estimated at 130K. 

 
I also think redfin bases estimates heavily on list prices.  If most homes sell for 5% off list price then I could one could always make estimates based on being 5% off list price and be quite accurate. 

As for Zillow:

http://www.zillow.com/zestimate/#acc

It's more than 50% likely that a home will sell within 5% of a zestimate according to Zillow.  Sometimes zestimates are way off but it's rare.
 
eyephone said:
As I mentioned before, just take a recent comp. for a reasonable estimate.
Click to expand...

I actually think Redfin/Zillow is better than just looking at comps in cookie cutter tracts.  People just can't calculate prices for time on market, mortgage rates, general price appreciation, lot size, sqft, bedrooms, baths, etc...  better than Redfin/Zillow.  When most people look at comps, did they check what mortgage rates were at the time of sale for a comp or seasonality and adjust prices by the correct percentages based on that data?  Also looking at 4-5 comps is only enough data for a very rough estimate.  A chi-squared test would tell you that.  There's some randomness in real estate pricing.
 
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