Redfin, however, automatically pulls up the properties it’s comparing your property to, as well as a map of where they’re located. Zillow offers very little information apart from the Zestimate number itself. One way Redfin pulls ahead is with transparency. So many factors impact the estimates, though, that sometimes Redfin will be more accurate, and sometimes Zillow will be more accurate. So according to these self-reported numbers, Zillow’s Zestimate tool tends to be more accurate for both, when compared to Redfin’s (3.02% for on-market and 8.69% for off market). Is the Redfin estimate or Zillow Zestimate more accurate? As we’ve covered in Can the Zillow Zestimate be Trusted?, Zillow has a median error rate of 1.9% for on-market homes and 7.5% for off-market homes. Since they will sometimes give two different numbers for the same property, not surprisingly, users are curious as to which tool is more accurate. The Redfin Estimate and Zillow Zestimate are two competing home value estimation tools. Since then, Redfin has adjusted its median error rate several times - the original error rates they listed were actually lower for both on and off-market properties than they are now. But on the other hand, an inaccurate estimate can be misleading and contribute to a less positive home purchase/home selling experience. It can be helpful to get a rough estimate of a home’s value, whether you’re a buyer or a seller. This means that sometimes homes will be off by only 3% - but conversely, sometimes homes will be off by 11%.įor this reason, the Redfin estimate can be equal parts helpful and harmful. If your home would sell for the national median price, your off-market estimate could be off by $35,000 - or even more, since that’s simply the median error rate. To understand how this would look for the median home sale price in the US: On-market homes tend to be more accurate because Realtors have proactively added in all the relevant info about the home, allowing Redfin to better guess the value. It may or may not reflect the true market value.Īccording to Redfin, their estimate has “a median error rate of 3.02% for on-market homes and 8.69% for off market homes.” In other words - if you’re a potential seller who hasn’t put your home on the market yet, the estimate may be off by many thousands of dollars. List price/asking price: this amount is set by the homeowner, on the advice of their agent.True market value: what people are actually willing to pay for a home.Estimated home value: an approximate amount your home would sell for, based on what other, similar properties have recently sold for.There are a few terms that are important to understand: Importantly, the Redfin Estimate is not an appraisal - it can be off by thousands of dollars, especially if the listing is missing information about recent renovations, unique characteristics, etc. The intent is to give homeowners another tool for deciding when to sell, and provide home buyers with comparative data. The estimate is calculated using data from MLSs (multiple listing services) to predict how much a home will be worth when it goes to market - the most important factor being how much other, similar homes in the area have sold for. The Redfin estimate is a home valuation tool provided by real estate brokerage Redfin - it can also be referred to as an AVM (automated valuation model). That's where the Redfin Estimate comes in. With the real estate market in flux, homeowners want to know how much money their home can command on the open market - and homebuyers, for their part, want to make sure they're not overpaying for property.
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