I think is very interesting:
The home just sold last week for $835K, but the Redfin estimate is $941K. I’m not sure how they’re calculating these estimates, but that’s a little weird. I’m not sure what a good price is for that home, but the small lot definitely puts it on the lower side. I would’ve thought that the estimate should match the recent selling price a lot closer.
I have a 2/1.5 in evergreen that I’m wondering about the Redfin estimate on mine also. There are really no good comps on it because mine is 1234 sq.ft. and most of the other 2/1.5 are 900 something. The comps they provide are not in the immediate neighborhood either. I would look at the Redfin estimate but not take it too seriously.
Redfin estimate is usually too high. Is an initial perception since Redfin starts giving estimate only recently.
Zillow estimate tends to be low in an inactive or rising market, tends to be high in a declining market. Too low if there is a recent badly maintained or near a junction house was sold or too high if there is an exceptionally well modeled house sold.
Certainly makes sense that they would be off in a rising/declining market, BUT, if their algorithm is off by 10% on a house the same size, lot size the same size and neighborhood the same as another one that sold the week before, their algorithm needs a lot of work. Ie, the value of a house that just sold should be very close to last week’s sales price or the algorithm is not very good.