When you compare Zillow home value estimates (“Zestimates“) in the Phoenix area to the actual sales prices of those homes, the Zillow estimate is typically off by 11% (median error).
Buyers and sellers can, unfortunately, “anchor” on Zillow estimates which can cause heartburn and heartache when the “Zestimate” is off.
But Zillow is very open about saying that their estimate is just a starting point in figuring out the true value of a house.
Phoenix “Zestimate” Accuracy
So, just remember when starting to figure out the true value of a house that the Zillow estimate is typically off by 11% in the Phoenix area.
Median Error: In Phoenix, the Zestimates for half of the homes were within 11.0% of the actual sales price, and half were off by more than 11.0%
ADDED: Previous post on Zillow.com.