Recently I wrote an article for BiggerPockets criticizing Zillow's Zestimate feature and noting it probably relied too much on the list price for listed properties; which is why it's Zestimate is usually pretty good for such properties whereas not so good for unlisted properties. I compared 12 appraisals we had to their Zestimate and found,
Overall, there’s quite a range with the Zestimate, including half being over 10 percent off the appraisal and two being over 20 percent.
I can think of no better example of this than a recent property I looked at. It was bought in August for $193,000 and then relisted in October (with what looked like nothing more than paint and carpet) for $325,000. Here's what the Zestimate did:
Yes, the Zestimate is a good place to start. But don't ever take it to the bank!
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