Real estate platforms Zillow and Redfin both offer home value estimation tools, but their accuracy has come under scrutiny, leading users to wonder about the actual value that these services provide.
Redfin cites independent study data to say that its service is more accurate, and says its median national error rate of for-sale homes (estimated price vs. selling price) is 1.77 percent. For homes not on the market, the median error rate jumps to 6.66 percent. Zillow recently announced its median error rate overall will soon fall below 4.0 percent or lower, from its current 4.5 percent rate. Zillow does not separate out for-sale vs. not-for-sale homes in its rate, The Washington Post reports.
Both are used by millions of home shoppers, owners, realty agents, anyone curious about what a house in their neighborhood might be worth. Both also have been criticized for estimates that are off the mark; some homeowners have actually sued Zillow over their Zestimates, although unsuccessfully. Zillow’s own chief executive, Spencer Rascoff, famously sold his Seattle home for 40 percent below its Zestimate.
Advertisement
Related Stories
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Labor + Trade Relations
Who's Earning What in Construction
Workers in construction management roles may earn a higher median wage, but on average, lower-paid occupations have experienced somewhat faster wage growth
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development
