![]() Zestimate accuracy is impacted by the frequency and history of nearby sales. Do you find that the Zestimate is more or less accurate based on how urban or dense the housing stock is? By offering valuation information for 72 million homes across the country, coupled with data like recent transactions and neighborhood comparisons, Zillow gives buyers, sellers and owners a starting point to become more knowledgeable about home values.Ģ) Many UrbanTurf readers are home buyers in urban, dense markets. The Zestimate is designed as a research tool for home valuation, but ultimately, a home’s sale price is determined by the buyer and seller. When a home sells, we compare the Zestimate value from the day before the sale to the actual sale price. We also track the accuracy of our Zestimates and publish the results down to the county level. So, not only can you look at any house’s value today, but you can also chart how its value has changed over time. We’ve calculated historic Zestimates on most homes, and in some cases we have more than 10 years’ worth of data. We use those relationships to estimate the current value of an individual home. It starts with data about the physical characteristics – number of bedrooms, baths, square footage, lot size – of all the homes in an area, and then looks at the relationship between these characteristics and the sale prices of homes in that area. Our team of economists and analysts developed a proprietary algorithm, the Zestimate, designed to estimate the current value of a home. Rascoff, a former investment banker who co-founded the discount travel website in 1999, took the place of Barton as chief executive officer in September.ġ) Can you provide some insight into the methodology that goes into Zestimate, Zillow’s home valuation tool, and why you think it is the most accurate valuation tool available? How does the tool take local market conditions into account? UrbanTurf recently interviewed Zillow CEO Spencer Rascoff about the website, the DC housing market and the evolving accuracy of its popular Zestimate tool. ![]() Founded in 2005 by Rich Barton and Lloyd Frink, Zillow offers many of the features available at other online real estate brokerages (listings, local real estate data), but it has become famous for creating a proprietary algorithm called the “Zestimate” that provides values for millions of homes around the country. For those who don’t know, Zillow is an online real estate database and marketplace that rivals Trulia as one of the biggest real estate websites in the country.
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