Money Magazine: Think Twice About Trusting 'Zestimate'
Americans love the Zestimate, but Zillow's latest business problems suggest you should think twice before using the popular home value algorithm to make any big real estate decisions...
Zillow has maintained that the figure is a place to start and does not replace a professional appraisal — while also claiming high accuracy rates and eventually using the Zestimate in its offers to buy homes. “We leveraged the Zestimate in our Zillow Offers operations the same way we encourage the public to use it: as a starting point,” said spokesperson Viet Shelton...
According to Ryan Lundquist, an appraiser in Sacramento, California, the Zestimate is “really hit and miss.” Sometimes it is spot on with value and others it’s off by hundreds of thousands of dollars.
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