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.
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.