Is Your Zestimate Accurate? What Zillow Can't See

A Zestimate is basically an automated valuation.

So there's a system that is looking at a huge amount of information, multiple data points.

It could be the square footage, bedrooms, bathrooms, tax records, previous sales.

It's looking at multiple data points of market activity.

activity then the algorithm says based on the information we have we estimate that you know we estimate that this property is worth approximately x right and that's pretty it's pretty impressive when you think about it a computer or a system can look at millions of pieces of data and give you an estimated value in seconds but notice the word i keep using estimate right estimate it's just a starting point guys and one of the easiest way i explain this is The computer can see the data, but it can't always understand the exact context because again, a computer is not human.

The real estate game is actually incredibly contextual.

I'll give you an example.

Let's just say we have two same houses in the same neighborhood.

They have the same square footage, bedrooms, bathrooms.

Okay, I think you guys get the point.

But on paper, they almost look identical.

But let's just say that house A is completely renovated.

It's completely renovated.

It has newer everything, bathrooms, kitchen, basement, landscape, everything.

House B, on the other hand, is 20 years old, right? Its original kitchen has OG bathroom, older roof, right? It might have a little bit of deferred maintenance and algorithm may recognize some of those differences if that information is available.

But if it doesn't, Then obviously that is a factor, right? That's a factor to consider.

So again, those things matter.