<\/span><\/h2>\nZillow’s proprietary algorithm, known as the Zestimate, uses a variety of data points to estimate the value of a property. This includes information on recent sales in the area, tax records, and the physical characteristics of the property. The goal is to provide users with an estimate that reflects the current market value.<\/p>\n
So, how close is Zillow’s estimate to the true appraisal value?<\/strong><\/p>\nThe accuracy of Zillow’s estimate can vary. According to Zillow, the nationwide median error rate for the Zestimate is around 4.5%. This means that half of the estimates fall within 4.5% of the actual selling price, while the other half may be further off. <\/p>\n
While a 4.5% margin of error may seem reasonable, it is important to note that it does not guarantee the accuracy of the estimate in any individual case. The accuracy can be influenced by a variety of factors, both within and outside of Zillow’s control.<\/p>\n