Redfin vs Zillow estimate accuracy | How home valuation tools work | How to fix an inaccurate Redfin or Zillow estimate | Is my estimate correct? | FAQs
Zillow and Redfin’s property value estimators both can give you a rough estimate of the value of your home. Zillow Zestimates are typically more accurate than Redfin Estimates, but both tools have a fairly large margin of error.
Whether you’re buying, selling, or refinancing, you need to know exactly what your home is worth. Without accurate information, you could make a poor real estate decision that could cost you thousands of dollars.
The best strategy for getting an accurate appraisal of the value of your property is to talk to a real estate agent in your area. An agent can personally evaluate your property and assess its value compared to local market conditions.
Need a great local realtor? Our friends at Clever Real Estate can help you quickly and easily find top agents in your area. Clever also negotiates huge savings on your behalf, so you can keep thousands more in your pocket when you buy or sell your home. Get a free home evaluation from a top local agent today!
Redfin vs Zillow estimate accuracy
Nationally, Zillow Zestimates are generally more accurate than Redfin Estimates. However, neither tool is accurate enough to use when making important financial decisions like pricing your home or negotiating an offer.
| Home Type | Redfin median error* | Zillow median error* |
|---|---|---|
| Off-market (not for sale) | 8.70% | 6.90% |
| On-market (listed for sale) | 2.99% | 2.00% |
Many home sellers look at Zillow’s Zestimate or Redfin’s property value estimator to get an idea of what their home is worth before refinancing or listing it for sale. Both companies are relatively poor at evaluating these “off-market” homes.
For off-market homes, Zillow’s Zestimate has a median error rate of 6.9%, while Redfin’s Estimator has a median error rate of 8.70%. To put this in perspective, a $300,000 estimate with a median error rate of 8% represents a swing of $24,000 in either direction, with half of houses swinging even more than that!
Editor’s Note
Choosing your list price based on Zillow or Redfin’s estimates could be a costly mistake. There’s a huge risk you’ll overprice your home, making it much harder to sell, or underprice your home, causing you to leave thousands of dollars on the table!
Redfin and Zillow are better at estimating the value of homes that are already listed for sale. For these “on-market” homes, Zillow’s national median error rate is 2.00% and Redfin’s is 2.99%. What does this mean? If you see a for sale listing with a $299,000 Zestimate (the national average), the home will typically sell for between $293,020 and $304,980.
How accurate are Redfin’s Estimates?
Redfin Estimates are a good starting point for figuring out your home’s value. But they’re typically less accurate than a professional home valuation from a licensed realtor.
According to Redfin, its estimates have a median error rate of 8.70% for homes not listed for sale and 2.99% for homes that are currently on the market. In practice, this means that your home’s Redfin Estimate is likely tens of thousands of dollars off the mark.
Based on Redfin’s nationwide accuracy data, if your estimate is $299,000 and your house isn’t currently for sale, its true market value is probably between $272,987 and $325,013, but it will be outside of that range half the time.
🚨 Ask a realtor – Redfin’s Estimates
“I have found Redfin to typically be on the high side and often not accurate,” says Susan Aviles, a real estate agent based in Charleston, SC. “As I understand, Redfin fishes for sellers, so they put their numbers higher to get the clients.”
How accurate are Zillow’s Zestimates?
Zillow’s Zestimates are also a useful starting point for approximating your home’s value. However, as with Redfin’s Estimates, they’re not perfect, so you shouldn’t treat them as a substitute for an evaluation from a real estate agent.
According to Zillow, its Zestimates have a median error rate of 6.90% for off-market homes and 2.00% for homes that are currently listed for sale. This makes them slightly more accurate than Redfin Estimates. This also means that the average home’s Zestimate, particularly if it’s not listed for sale, may be off by tens of thousands of dollars.
The “Zestimate Range,” which accounts for this margin of error, gives a more accurate picture of what Zillow thinks the house is worth. You can find the Zestimate Range by scrolling down to the “Home value” section of the property’s listing, as shown below.
Be aware that the Zestimate Range can be misleading. According to Zillow, just half of all home values are actually within their Zestimate Range.
In the example above, the Zestimate Range is $229,000-$263,000. That means there’s a 50% chance the home is worth more than $263,000 or less than $229,000. In other words, buying or selling a house based on the Zestimate alone could be a huge mistake!
🚨 Ask a realtor – Zillow’s Zestimates
“In my professional opinion, Zillow has gotten quite accurate,” says agent Susan Aviles, “but not as close as a professional appraisal or a CMA from a qualified realtor who knows the area. As I understand, Zillow doesn’t adjust for the extent of renovations, age of the roof, age of the HVAC, possible impediments such as busy roads, power lines, unpopular floor plans or views, etc. Qualified realtors spend hours running the numbers to come to an estimated value and do take into consideration the latter.”
Accuracy calculator
Redfin’s Estimate, Zillow’s Zestimate, and other home value estimators can’t tell you exactly what your home is worth. However, you can use the calculator below to get a better idea of your property’s estimated value.
Plug in your Zestimate or Redfin Estimate along with the estimate’s median error rate. The calculator will show you a value range that accounts for this expected margin of error.
Remember, Zillow and Redfin base their estimates on the median error rate, so there’s still a 50% chance that your home’s true value is outside of this range.
Getting a more accurate analysis of your property’s value is an essential next step in moving forward with selling your property. A real estate agent can perform an in-person analysis of your property and provide you with a much more accurate estimate of its value.
Our friends at Clever can provide you with a free — and highly accurate — professional home valuation from a top local realtor. And, if you decide to move forward with your agent, you’ll get a huge discount on realtor fees, saving you thousands on commission when you sell your home.
How Redfin Estimates and Zillow Zestimates work
Like other similar tools, Redfin and Zillow calculate a home’s estimated value using publicly available data, like tax records, recent property sales, and local market trends.
The estimator considers all of that information and uses it to approximate the value of features of your home. The more data an estimator has about your property and similar homes in your area, the more accurate the estimate is.
For example, if a home sold in the past few years, the property facts from the old MLS listing are likely still accurate. On the other hand, if the property has been off the market for a while, Zillow and Redfin may not be aware of home modifications the owner has made over the years.
Also, Zillow and Redfin’s estimators don’t have access to essential information about your home. Details such as interior layout, the state of your roof and HVAC systems, and your home’s curb appeal don’t appear in public data sets, so they won’t factor into your estimate.
For a complete analysis of your home’s value, you need to have your property evaluated by a real estate professional. They can assess the factors Zillow and Redfin miss, allowing them to calculate what your home is worth more accurately.
Why do Redfin and Zillow have different estimates for my house?
Most of the time, Zillow and Redfin have different estimates for your house because they have slightly different approaches to calculating home values. However, if there is a huge gap between your Zestimate and Redfin Estimate, it may mean that one company has inaccurate information about your home.
Redfin and Zillow both rely on public, MLS, and user-submitted data to estimate the value of your property. Although they operate similarly, they may be using different information to calculate their estimates. For example, one estimator might not include traffic data in your area, while the other one slightly penalizes properties in high traffic areas.
Since Redfin and Zillow don’t tell us exactly how their tools work, we don’t know the specific differences between how they estimate home values.
Is a Redfin Estimate or Zestimate the same as an appraisal or a CMA?
No. A formal appraisal or a comparative market analysis (CMA) involves a real estate professional actually examining your property, while an online estimator just uses public data sets to make assumptions about your home. This is why online estimators are just a starting point for evaluating your property.
When an appraiser or real estate agent evaluates your home, they’ll visit it personally to gather accurate information on your property’s attributes, including features that may not appear in tax records or old MLS listings.
For example, while Zillow and Redfin can likely find basic facts like your home’s square footage and number of bedrooms, they won’t know much, if anything, about your home’s condition. When you get a CMA or appraisal, the estimate will also account for critical factors like the age of your heating and cooling system, the amount of traffic in your neighborhood, and the quality of interior modifications like a refinished kitchen. This helps the agent or appraiser produce a highly accurate assessment of your property’s value.
How to fix an incorrect Redfin or Zillow estimate
If you believe your Redfin Estimate or Zillow Zestimate is inaccurate, both sites allow you to edit your home facts. When an estimate is based on inaccurate or outdated information, updating your property information typically improves the estimate’s accuracy.
For example, on Redfin, just visit the page of your property and click on the “Edit Home Facts” link, as shown here:
Be aware that this process involves proving that you are the property owner. This means giving your contact information to those companies, who may use it for advertising purposes.
Should I update my property information on Redfin and Zillow before selling?
If updating your property information on Redfin and Zillow could help the sale of your home, then it’s worth considering.
For example, if an estimator has incorrect data about your home that would cause a lower estimate, a buyer who sees that estimate may want to make a lower offer on your home. If Zillow is calculating your estimate based on two bedrooms when your home actually has three, then correcting that data should raise your Zestimate — and give buyers a better idea of what your home is really worth.
On the other hand, if the current estimate is accurate or even higher than you expect, you should talk to your agent before editing your home facts. They can tell you whether it’s worth updating your property information anyway or the home facts are fine as-is.
How do I know if my home estimate is accurate?
The best way to find out if your home’s Zestimate or Redfin Estimate is accurate is to get a professional home valuation (or CMA) from a top local real estate agent.
When an experienced agent performs a CMA, they’ll examine your home personally to assess its features and conditions. This evaluation, along with their on-the-ground knowledge of your local market, enables them to give you an accurate picture of what your home is really worth.
Ready to get a professional home evaluation? Our friends at Clever can connect you to a top-rated local realtor from a trusted brokerage like Berkshire Hathaway or RE/MAX. Clever also pre-negotiates huge savings for you! With Clever, you can sell your home for a $3,000 or 1% commission, saving you thousands on realtor fees!
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FAQs about Redfin and Zillow estimates
Are Redfin Estimates or Zillow Zestimates more accurate?
Nationally, Zillow is slightly more accurate than Redfin. However, their accuracy varies from city to city and state to state, and Redfin is more accurate in some areas. Both estimates are reasonably precise for homes currently on the market but are much less accurate for homes not currently listed for sale. Learn more about the accuracy of these estimates.
Why did my Zestimate or Redfin Estimate drop?
Zillow and Redfin factor recent home sales into your home's estimate. If a similar property in your area recently sold at a relatively low price, this could cause your estimate to drop. Learn more about how Zestimates and Redfin Estimates work.
My Zestimate or Redfin Estimate is low — what should I do?
You can contact Redfin or Zillow and submit corrected data for your property. However, you must verify your status as the property owner, which gives Redfin or Zillow your contact data, and they may begin to contact you regarding their services.
Can I remove my Zestimate or Redfin estimate?
No. Zestimates and Redfin Estimates are based on publicly available data, which means they’re able to present estimates of property values based on that data. If you’re concerned about a low estimate, your best approach is to submit corrected data to Redfin or Zillow.
Will my Zestimate or Redfin Estimate affect my ability to refinance?
No. Lenders do not consider your Redfin Estimate or Zestimate when evaluating your refinance application. Your lender wants an extremely accurate assessment of your property's value, not a ballpark estimate. They'll typically hire a professional real estate appraiser to perform a thorough in-person inspection. This appraisal will determine how much you can borrow and whether you will need to pay mortgage insurance.
How are Zestimates and Redfin Estimates calculated?
Redfin and Zillow calculate your home estimate using publicly available data on your property and nearby propertiesThis estimated value is based on attributes of properties that have recently sold in your area. Learn more about how online real estate estimators work.
How close are appraisals to Zillow Zestimates and Redfin Estimates?
Lending institutions consider appraisals more accurate than estimates because appraisers go into much greater detail in their evaluation. Professional appraisers examine a home directly and identify smaller factors that may adjust the value of a home.
How do Trulia’s estimates compare to Redfin Estimates and Zillow Zestimates?
Trulia’s estimates are usually identical to ZIllow Zestimates. Trulia is a subsidiary of Zillow, and both sites appear to use the same algorithm for estimations.
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