How wrong are Zillow Zestimates in Houston, Texas? Zillow is known for its inaccurate market valuations. However, it remains a popular tool for both home buyers and sellers. While Zillow can be a great place to start your real estate journey, it’s important to understand its limitations.
In this post, our Houston real estate experts at Your Home Sold Guaranteed Realty - Chris Schmidt Team will discuss Zillow’s inaccuracies for homes in Houston.
Key Takeaways:
- In Houston, Zillow’s median error rate is 2.23%, based on data gathered from 30,800 homes.
- In Texas more broadly, Zestimates has an error rate of 2.26%, based on data from 129,900 homes. Nationwide, the error rate is 2.4% for on-market homes and 7.49% for off-market homes.
- The discrepancy between Zestimates and a home’s actual market value is because Zillow uses an automated valuation model to provide its estimates.
How Wrong Are Zillow Zestimates in Houston, Texas?
In Houston, Zillow’s median error rate is 2.23%, based on data gathered from 30,800 homes. Many of Zillow’s Zestimates come within five to twenty percent of a home’s final sale price. According to Zillow, the data for Houston homes is:
- 81.07% of homes sold in Houston had a Zillow Zestimate within 5% of the final sale price
- 94.35% of homes sold in Houston had a Zillow Zestimate within 10% of the final sale price
- 98.40% of homes sold in Houston had a Zillow Zestimate within 20% of the final sale price
In Texas more broadly, Zestimates has an error rate of 2.26%, based on data from 129,900 homes. Nationwide, the error rate is 2.4% for on-market homes and 7.49% for off-market homes.
Why are Zillow Zestimates Wrong?
So, why do Zillow Zestimates get it wrong sometimes? The discrepancy between Zestimates and a home’s actual market value is because Zillow uses an automated valuation model to provide its estimates.
This model uses an algorithm that analyzes publicly available and user-generated data on recent sales in the area. The resulting estimates are only as accurate as the data they’re based on. So if a certain area lacks data, the home value estimates will likely be less accurate compared to areas with more data.
In addition, the problem with using an algorithm-based method is that they can’t take into account the unique characteristics or features of a particular home that may impact its market value. This includes recent renovations and upgrades.
Ultimately, only a realtor or licensed appraiser can provide an in-depth analysis of current market conditions, comparable sales, and the unique characteristics of a property.
Discover Your Home’s Market Value in Houston with Chris Schmidt
Whether you’re buying or selling a house, working with a Houston realtor is essential for determining a property’s market value. At Your Home Sold Guaranteed Realty - Chris Schmidt Team Chris Schmidt and our team have years of experience working in the Houston metropolitan area.
Our familiarity with the local market trends, as well as our legendary customer service, are why we’ve developed a reputation as the best realtor in Houston. We can easily help you determine the market value of a home in Houston, whether you’re buying, selling, or are a current homeowner.
To learn more about working with our team, give us a call at 713-322-5604. You can also fill out the form on this page or send a message to [javascript protected email address].
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