|February 02, 2017|
|Independent Study Finds Redfin Estimate to be Most Accurate Among Top Automated Home-Value Estimates|
The Redfin Estimate was More than Twice as Likely to be Within 3% of the Home's Selling Price than the Zillow ZestimateⓇ and more than Four Times as Likely as the Homes.com Estimate
SEATTLE -- Feb. 2, 2017 -- Redfin (www.redfin.com), the next-generation real estate brokerage, today announced the findings of a comprehensive, independent study that found that the Redfin Estimate more accurately predicted the value of thousands of homes for sale than estimates from other leading providers of public home-value estimates. Of the more than 5,000 home sales evaluated in the study, 64 percent sold within 3 percent of the price predicted by Redfin, compared to 29 percent for Zillow and 16 percent for Homes.com. The median error rate of the home-value estimate was 2.06 percent for Redfin, 5.95 percent for Zillow and 10.26 percent for Homes.com. Redfin commissioned independent research company SSRS to conduct the study.
SSRS is an award-winning social science and market research firm with widely cited research on topics including the presidential election, government-provided health insurance, mobile e-commerce, immigration, opioid abuse, perceptions of disabled veterans and racial attitudes among children. The firm's clients and partners include the Harvard T.H. Chan School of Public Health, the Pew Research Center, the George W. Bush Presidential Center, the Sesame Street Workshop, the Atlantic and The New York Times.
"Our findings are clear: Redfin performed significantly better than Zillow and Homes.com at predicting home-sale prices," said Dr. Aniruddha Banerjee, SSRS's senior vice president of advanced analytics. "We hope that others attempt to replicate our results. Our methodology for coming to this conclusion was consistent with the rigorous approaches taken at academic institutions."
Comparison of Redfin, Zillow and Homes.com Home-Value Estimates
"Artificial intelligence is now being applied to the most fundamental questions in commerce, government and society, to make startlingly accurate predictions about global temperatures, stock-market prices, political movements and, for individual Americans, the value of their homes," said Adam Wiener, Redfin's executive in charge of data science. "And this is not like earlier victories for artificial intelligence, like beating a chess champion or winning at Jeopardy; it has supreme practical value for someone trying to make big decisions about what she can afford and where to live. What's most compelling about these predictions is not just their practical value, but that they can be proven right or wrong. When Redfin or another application says a listing is worth $325,000, we don't have to argue about who was right, we just have to wait for the final sale."
Why the Redfin Estimate is More Accurate
The Redfin Estimate error rate is dynamic and fluctuates depending on the data available at a given time. Redfin posts the most current national and local error rates on the Redfin Estimate page. The error rate updates daily for on-market homes and weekly for off-market homes. The Redfin Estimate is available for more than 65 million homes in major U.S. metropolitan areas. Zillow estimates the value of more than 100 million homes, covering areas beyond those major metros. Homes.com does not publish its estimate coverage.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, subscribe here. To view Redfin's press center, click here.