When we saw the news that Spencer Rascoff, the CEO of Zillow, sold his home in Seattle for $650,000 under its Zestimate, we decided to do some digging and test out the most reputable online pricing estimate sites.
In order to test them, we first ran our standard pricing analysis for a home that we were familiar with. We looked to recent sales comps (three identical models that sold for $779,100 and $770,000 and $752,500) and then looked at the active listings comps (three identical models listed for $869,000, $869,00 and $819,000).
After obtaining pricing, we figured we would see online estimates between $750K and $870K. However, given the disclosures regarding pricing accuracy, we should have known what we were in for.
So, how did the online estimates turn out? 8 of 9 weren't even close. Some were up to 30% (over $200K!) less than what we were expecting.
- Trulia - $643,000
- Zillow - $654,120
- Redfin - $677,729
- ReMax - $686,500
- Homesnap - $697,000
- Chase Bank - $706,000
- Bank of America - $708,543
- Realtor.com - $709,478
- HouseCanary - $845,800
Want our advice? The next time you are looking to value a property, find a local expert. Even Zillow's CEO will tell you that there is no substitute for seeking guidance from the pros.