Zillow has always been a sore subject with some Realtors with their zestimates of home values not being accurate. Well Zillow now is being open just how accurate they are.
According to this table, Zillow isn’t too accurate with their zestimates for SLO County home values. They do better with other counties but SLO County is one of the worst. A whopping 42% of homes are more than 20% off of their zestimate. So for example, a home that zillow says is $400K, may only be worth $320K (or less). Only 18% of their estimates are within 5% of the actual sale price which, to me, makes zillow zestimates pretty worthless.
So…you may wonder why I included Zillow Zestimates on the listing details for the new MLS Map Search if they are worthless. I did this because there’s a chance a GOOD realtor can use this Zillow info to negotiate a better deal for their clients. With 87% of Realtors on the Central Coast only selling 3 or fewer homes to buyers in 2009, there’s a lot of inexperienced realtors out there who may not know how to respond to an agent with good negotiating skills that presents zillow data. Many homeowners (and realtors) aren’t educated about zillow so it may mean an experienced realtor in this market can turn zillow zestimates into thousands of more dollars for their client if the zillow zestimate is to their client’s advantage.