How Accurate Are Online Home Value Estimates?

Redfin and Zillow employ publicly accessible information as well as user-submitted data to establish the market worth of a home. With Redfin citing a 2.28% median error rate for on-market homes and Zillow reporting a 1.9% error rate as of April 6, 2022. However, these estimates may not always be reliable, particularly for properties not currently on the market, with outdated information, or missing information about a property’s features or renovations.

Factors that Affect your Online Home Value According to Redfin and Zillow:

  1. Your home’s worth will be affected by its location, square footage, number of bedrooms, and any special features, such as a pool.
  2. The length of time your home has been on the market and remains unsold can have a substantial impact on its listing value.
  3. If your home is not currently for sale, Zillow and Redfin will estimate its value based on tax assessments, recent sales prices, and other publicly available data.
  4. Home value estimates from Redfin and Zillow can fluctuate in response to market trends. Seasonality, for example, can have an impact on housing prices; some properties sell for more in the summer and less in the winter.

It’s important to note that these estimates are not a replacement for professional appraisals, and working with real estate agents or appraisers is still recommended, especially for mortgage purposes. While these online valuation tools can be helpful, it’s crucial for homeowners to actively monitor and update their property information to ensure accurate estimates.

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Shirin Rezania Ramos | 858.345.0685 | | Compass, DRE 0203379

Shirin Rezania Ramos, Realtor®