What is that house worth in Nashville TN? Let's ask Zillow.
Zillow, I owe you an apology.
For a couple of years I have resisted Zillow. When Buyers tried to tell me what a house was worth because they saw it on Zillow, My first response was to tell them that it was wrong.
Usually, I did my own Market Analysis through our local MLS and argued that Zillow just plucked numbers from the air. Last week I broke down and actually to a class on Zillow and learned that I wasn't exactly right in my thinking. There's a lot more to their website than I was aware.
When asking What's that house Worth in Nashville TN?, Zillow pulls their information from several sources including the Tax Assessors office and from the local MLS. They have a page that they call Zestimates Values and Accuracy that lets you see how close they usually come to the actual values. If you look here, you'll see Davidson County in Nashville, Tennessee:
The 2 Stars mean that it's a Fair Zestimate overall. The chart also shows that 99% of the homes for sale are listed on their site. 30% of the Zestimates are with 5% of the actual Sales Price, 52% are with 10% and 73% are within 20%. Sounds pretty good. And it actually is, UNLESS...
So, what's that house worth in Nashville TN? If the house is Yours and you have it for sale at say $200,000. If Zillow is 5% off, it would be worth between $190,000 and $210,000. Close enough. If on the other had they were 10-20% off, the value would then range between $180,000 to $220,000 OR $160,000 to $240,000 accordingly.
Now we're talking about more than pocket change.
Depending on what part of the country you live in, they have varying degrees of accuracy. In Philadelphia, PA, they come within 5% of the sales price 30% of the time and within 10% over 50% of the time. Those are pretty good numbers.
If you're looking to price your home or purchase a home, look at the numbers on Zillow. Then call your Realtor. Let them do an accurate Market Analysis based on current sales in that area. They are the experts and can save you time and money.