Zillow.com accuracy challenged
The National Community Reinvestment Coalition claims that Zillow.com’s property estimates “are within 10 percent of actual market value ‘less than one-third of the time’” according to a recent Mercury News article. NCRC also claims that Zillow undervalues property in minority neighborhoods while property in predominantly white neighborhoods are overvalued. Zillow, however, contends that the NCRC’s claims are “groundless.”
Zillow's own internal audits show that “undervaluations were more commonplace in higher-cost areas, whereas overvaluations were more typical in lower-priced neighborhoods.” The larger question is whether automated valuation models can be trusted as much as traditional appraisals.
