Why Zillow estimates or Zestimates aren’t always accurate?
1. Garbage in. Garbage Out.
While Zillow allows you to change the bedroom count, square footage bathroom count in your home if it’s off, they rely heavily on public information and recent sales. Any inaccuracies or errors in the tax records can cause those numbers to be off greatly. For example, this property, which sold for $790,000, but was recorded in the tax records as a $79000 sale. Think about how far off that is.
2. X-ray Vision
Zillow can’t possibly know what your home looks like on the inside, whether or not you have upgrades. And whether the home down the street did or not.
3. Turnover Rate.
Being in a high volume city versus being in a rural area where there aren’t many sales can throw the algorithm off dramatically. If you live in a hot urban center chances that your zestimate is more accurate are greater.