How Accurate is Zillow?

Zillow is the first to admit that their Zestimates aren’t that accurate (and I appreciate their honesty!). An algorithm can’t differentiate between all of the different variables that go into the determining the value of a house. There are times when an AVM (Automated Valuation Model) will be much higher or significantly lower than the actual value of a house. A few times in my career, I’ve been surprised and the AVM and I agree on the price of the house.

I decided to do an experiment. The short video below shows the value that 4 different pricing models came up with for a house I had for sale in Medford and then I reveal the price that we actually sold for.