To help solve this problem, several services offer “scores,” like Walk Score for location and GreatSchools for schools. It’s not a new concept – FICO has been with us since 1958 – but the scope has grown widely.
However, some scores are less reliable than they might seem. For example, take Zillow’s Zestimate. How accurate is it? According to a recent Washington Post article, “Our research shows that, on average, those Zestimates are within 5% of the actual value of a home just half of the time.”
And the San Francisco region is even worse. Zillow publishes this information right on their site. As of late August, San Francisco region Zestimates are within 5% of the sale price just 21.5% of the time. On median there is a 10.8% error. Zillow gives itself 2 out of 4 stars for accuracy.
Low scores based on unreliable data are nothing but dirt.
Now Revaluate is going beyond the Zestimate to create an overall livability score with sub-scores for safety, environment, cost of living and a “Quality of Life Summary.” How accurate is it? Teke Wiggin writing for Inman News was surprised to find that an apartment that he liked living in has a score of 41. The property is “…below the livability threshold and has serious alert issues. Proceed with caution and investigate all alerts thoroughly.”
Our appetite for information is universal and unquenchable. But are we getting the facts we need, or is there too much junk food data processed with too many secret ingredients? Will the day come when we can order up our next home by entering beds, baths, maximum Zestimate and minimum Revaluation score? Certainly this information can inform your investigation. But how would you feel if an unreliable algorithm determined that your house is unlivable and worth half its value?
For more information or if you are interested in market values in our area, don’t hesitate to contact us at 775-432-6300.
Source: Long CoredeiroTeam