Are Zestimates Accurate in the Silicon Valley?

Today, we discuss the question, “Can you trust Zillow for an accurate home evaluation?” Zillow has been making their computer-generated Zestimates ever since they started out. The website currently receives 140 million visitors a month. Many sellers are looking at Zestimates when pricing their home, and buyers look at Zestimates when planning their offers. 

However, Zestimates are within 10% of the sales price 68.8% of the time. That means this data is more than 10% off, 30% of the time. For instance, the average sales price in Santa Clara county was around $1,080,277 last year. If Zillow is off by more than 10% in 30% of their Zestimates, they’re off by $100,000 on average in Santa Clara county. That’s a huge difference in our area.

Ultimately, Zillow’s accuracy really depends on your neighborhood. Zestimates tend to be more accurate in larger neighborhoods of tract homes, since it has more data to pull from. Although I encourage real estate consumers to investigate Zestimates, you can’t rely on them for an accurate analysis. This data isn’t meant to be an appraisal. Only a professional in the industry, like myself, can provide that comprehensive information. Even Zillow stresses the importance that Zestimates are only the beginning to your home search and aren’t 100% accurate!

If you’re thinking about buying or selling a home in the Silicon Valley area, give me a call or send me an email. I’d be happy to provide an in-depth evaluation of your home. Additionally, if you’re interested in a particular topic to cover in a future video, please reach out with your suggestion!