A few years ago, I wrote a blog post on the accuracy of Zillow’s Zestimates “their automated estimate of your home’s value” for the Charlotte area. At that time, their data seemed quite inconsistent (just ask any active real estate agent). So with a few more years of data under their belts, I wondered how their Zestimtes have improved for the Charlotte area.
Keep in mind that Zillow publishes this data on their website every quarter and Charlotte (and Mecklenburg county) are considered their highest rating for accuracy.
While their accuracy has improved, it still shows that their estimate of home values in the Charlotte area is only within 5% of the actual value between 29-40% of the time. Their highest accuracy remains within 20% of the actual value, which is pretty broad but as to be expected.
To see how this applies in real life, if your home is actually worth $300,000, the Zestimate estimate would be +/- $15,000 only 35% of the time but within $60,000 almost 80% of the time. That’s quite a wide berth.
While it’s a good way to get an idea of what’s happening in a neighborhood on a 10,000 foot level, to get a better idea of a property’s value, consult with an active real estate agent (not one that just happens to be a member of the MLS but one that can speak to the market conditions as to what the homes that have sold recently have offered) or an appraiser that specializes in your neighborhood and type of residence.