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If their Zestimate is any indication of their algorithm's proficiency, then that might point to the problem. The range of values they give for a home are freque
by unclebucknasty 5y ago
If their Zestimate is any indication of their algorithm's proficiency, then that might point to the problem. The range of values they give for a home are frequently ~30% wide. Then they just pick a midpoint. So, it's "we think it's worth $700K, give or take $100K. Not exactly rocket data science.
I previously just chalked that up to the whole estimate being a marketing thing anyway. And figured that if they did have some brilliant data science accurately predicting home prices, why would they give it away?
Now that I see they were consistently overpaying for houses in a rising market--even with a presumed premium baked in for the convenience of an easy sale process--it's looking like their algorithms are indeed suspect.