Zillow Admits They Can't Predict Prices
I wanted to share some news that is sweeping through real estate circles, but before I do, let me give you some background. All of you are probably familiar with Zillow’s Zestimate, their estimate for the market value of your home that is run by some algorithm that collects nearby comparable sales. Us agents have been saying how inaccurate this Zestimate is for years.
"The fact that Zillow can't predict prices shatters the illusion of their Zestimate."
Just before the pandemic, Zillow came out with their iBuyer program where they offer cash for people’s houses, make some cosmetic repairs, and then resell that house for a profit. This is completely okay; it’s called flipping, and investors do it all the time.
On November 2, Zillow announced that they are stopping their iBuyer program amid “pricing unpredictability,” as the headline states. To mean, this is Zillow admitting they do not know how to predict the price of a home. It shatters the illusion of their Zestimate.
To know what a house will sell for on the market, it has to be exposed to the market. I’ve been doing this for 18 years, and the truth is that no one can predict what a house will sell for. You can use all the data you want, but you will never know for sure.
If you have any questions about what your house is worth, where the market is headed, if now is a good time to sell, or if it’s a good idea to buy, give me a call or email me at [email protected]. We’ll sit down, talk, and see if buying or selling makes sense for you in today’s market.