AgentTechnology

Zestimate accuracy improved with valuation model tune-up

Home value estimates of new homes are particularly likely to be affected by update
  • Update to Zestimate includes freshly-minted algorithm for new homes and more computing power.

Unsure about the accuracy of some Zestimates? Take a second look at those valuations tomorrow: they may look more realistic than before, particularly if they're new homes. Zillow is rolling out an update to the Zestimate's automated valuation model (AVM) that will increase the accuracy of Zestimates nationwide, including in 96 of the 100 largest U.S. counties, according to the listing portal. The tweaks will cut the Zestimate's national "median error rate" to 6 percent from 8 percent, meaning that half of Zestimates nationwide will be within 6 percent of a home's sales price and half will be off by more than 6 percent, according to Zillow. Zillow has more than halved the national median error rate of the Zestimate since the Zestimate's debut in 2006. At that time, the Zestimate had a national median error rate of 13.6. Zestimate's median error rates vary widely at a local level. Source: Zillow The update to the Zestimate AVM enables the AVM to make bett...