How accurate are "Zestimates" on Zillow?

[Parth Patel]

Hey everyone,

I'm currently educating myself about Rental properties before I go and purchase one myself. I'm practicing doing rental analysis, but some of the homes on Zillow are priced REALLY low yet look like they're in decent condition. I was wondering how accurate some of the home estimates are.

For example, the home i'm currently looking at is $100,000 yet the Zestimate is showing $283,145. (New Jersey). Homes around the area are prices between 230k-400k. 

3 Bed 2 Bath 

Rent Zestimate is $2,000 per month. 

Would really appreciate some insight on this. 

Thanks.

[Christopher Phillips]

Parth Patel

Don't even look at the zestimate. The numbers are worthless and no serious investor or professional will take you seriously if you mention zestimate in public.

The numbers are averages. They don't use comps. Take no consideration for location, scenic views, or being next to a toxic dump.

They have no way of knowing the interior or exterior condition of a house.

If you want to understand comps, there are a zillion videos on YouTube showing how to do a CMA.