A question I get asked a lot is how accurate is Zillow on their home valuations?
Zillow is supposed to be within 10% of market value, but with the average price home in Anchorage that is a difference of $33,000! Here is a list of a few homes I’ve recently sold with the appraised value vs. the “Zestimate.” As you can see, some of them are extremely far off:
Appraisal on a South Anchorage duplex: $315,000. Zestimate: $293,683. Zillow undervalued this property by $21,317 or 7 percent. This was a property with multiple offers.
Appraisal on an East Anchorage home: $330,000. Zestimate: $355,895. Zillow overvalued it by $25,895 or 8 percent.
A midtown home: Appraised for $289,000, sold for $292,300 (with 3 offers). Zestimate: $206,892. Zillow undervalued by $82,108 or 28 percent.
Appraisal on a midtown home: $255,000. Zestimate: $234,569. Zillow undervalued by $20,431 or 8 percent. There were multiple offers on this property, too. I’m glad our sellers didn’t consult Zillow for their pricing.
Appraisal on a South Anchorage home: $315,000. Zestimate: $291,165. Zillow undervalued by $23,835 or 8 percent.
Appraisal on a midtown home: $310,000. Zestimate: $274,910. Zillow undervalued by $35,090 or 11 percent.
An Anchorage hillside home: Appraised for $460,000. Zestimate: $435,740. Zillow undervalued by $24,260 or 5 percent (5% doesn’t sound like much, but the seller would have lost nearly $25,000 if they had followed the Zillow pricing).
Appraisal on a home off Elmore: $365,000. Zestimate: $408,307. Zillow overvalued by $43,307 or 12 percent.
A townhome that I sold for $215,000 and was appraised at $215,000 has a Zestimate of $383,857. Zillow overvalued it by $168,857 or 78 percent, and that’s after Zillow has reduced it several times. When I sold this townhome Zillow was estimating it’s value even higher.
Not only is Zillow not accurate on pricing, but I’ve also had calls from clients about houses they find on Zillow only to find out the house has been sold for 4 or 5 months. Bedrooms, bathrooms, square footage, and amenities of homes are also things that I’ve seen reported incorrectly on Zillow.
As you can see Zillow isn’t very accurate, and they can be high or low. Give me a call if you’d like to know the actual market value of your home.