How much is my Portland home really worth? Zillow’s Zestimate says it is worth $z but my Realtor/appraiser/neighbor says it is worth $x. What gives? Any estimate of value is an opinion, the market eventually determines value.
Zillow provides their own answer as to what a Zestimate is :
How do we come up with the Zestimate?
We compute this figure by taking zillions of data points – much of this data is public – and entering them into a formula. This formula is built using what our statisticians call “a proprietary algorithm” – big words for “secret formula.” Currently, we calculate a Zestimate for more than 70 million homes and have data on 20 million more.
Accuracy is the next question. Zillow breaks down their accuracy by city. They score themselves 3 out of 4 in Portland and 68% of listings are within 20% of their actual selling price.
If you think your valuation is wonky, you can go into Zillow and adjust the statistics of you home and the system will then recompute the Zestimate based on updated information. Any valuation needs to be taken with a grain of salt, no matter what the source is. Zillow, like all automated systems, provides a baseline and a starting point to the conversation about what price the market will bear.
***Full disclosure: We advertise on Zillow. We are featured agents for the 97210 zip code and all of our listings appear as “Featured Listings” when property results are shown for a given search in any area.