16 February 2007
Soft, Zillowy numbers
I've spent some time playing with Zillow, as it speculates as to the value of the palatial Surlywood estate, and sometimes it seems pretty accurate and sometimes you wonder where the heck they came up with that number.
The Wall Street Journal has now looked into the matter, and, well, sometimes it seems pretty accurate, and never mind, you can see where this is going.
Executive summary, sort of:
The WSJ took 1,000 recent sales and compared the sale price with Zillow's estimate (which didn't reflect the sale) and found that it was within 7.8% accurate, evenly split on the high and low side. However, the average doesn't tell the full story, what's the standard deviation? Well, on 110 of the 1000, it was off by more than 25% and of the 110, 23 were off by more than 50%. Zillow's nice and, as I've mentioned in the past, it's only as good as the information it has often times it doesn't have the full picture.
Still a fun little tool that really doesn't bring much to the table. Can you use it to get an idea of the value of a home? Sure, but I wouldn't bet any money on it.
Current Surlywood Zestimate: $101,558. I think this is about, oh, 7.8 percent high.
(Via The Consumerist.)