https://youtu.be/wRb2qK0RkDU There is no set definition about what is considered pre-qualified and what is…
How Accurate is Zillow’s Zestimate? | Omaha NE Homebuyer’s Guide
How Does Zillow Come Up With Its Home Value Estimates?
The honest answer is we are not exactly sure how accurate Zestimates are. Zillow says they use “a proprietary formula” and it is “calculated from public and user-submitted data”. However, we can guess based on the data they provide on their site.
User-Submitted Data
Anyone can submit home information on Zillow. Agents can submit their listings and homeowners can submit their own home information. This can provide a lot of data, but there is no guarantee that it is accurate. Agents are not held to the same standards as they are when submitting to the MLS (Multiple Listing Service) and homeowners can inflate their home’s size and stats.
Public Information
Most counties keep a record of the homes in their area. The home size, number of bedrooms and bathrooms, and quality of the home are evaluated at the time they are built and, possibly, every few years during the new assessment. If Zillow is using this information, it could be outdated if a home has been updated since it was built or last reviewed.
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Are There Better Automated Valuation Options?
No automated valuation is going to be 100% accurate. To get an accurate value it is best to contact an experienced agent for a free consultation. However, it is my opinion that there are better automated value options out there. The most well-known is Black Knight Home Price Index. This index pulls data from all the MLS throughout the country. The MLS is used by almost all licensed agents to list homes. They are required to provide accurate information about the home and report the final sale price. This means the data is more accurate and up to date than pulling user-submitted and public data.
Other useful links
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