AgentTechnology

Zestimate vs. Redfin Estimate: Are home valuations that use list prices, er, useful?

Redfin thinks so; Zillow does not

Say a seller wants a home value estimate for an active listing she sees online, but she's not ready to use a real estate agent. What would be more useful to her? An automated valuation that factors in the property's actual list price, or one that excludes that price -- instead relying only on comparable sales and other data? That's a sometimes-overlooked question raised by an independent study commissioned by Redfin that -- rather conveniently -- found that Redfin's automated valuations for property listings are considerably more accurate than online estimates from Zillow and homes.com. Estimate showdown Looking at properties across the U.S., the study found that half of Redfin's estimates for recently sold listings were within 2.06 percent of their sales price, compared to 5.95 percent for Zillow estimates (Zestimates) and 10.26 percent for Homes.com estimates. Redfin commissioned market research firm SSRS to conduct an independent analysis for the study. SSRS repo...