Zillow is making big changes to its Zestimate, the algorithm it uses to determine the value of homes across the U.S. The Seattle company, which is waiting to go public, also said that it has added valuations to about 25 million additional homes. That means Zillow now has home and rental Zestimates on about 100 million properties in the country.
“The new algorithm is producing Zestimates with significant improvements in accuracy,” the company writes in a blog post. “Nationally, our new median error is 8.5%. That’s 33% more accurate than what our median error with the old algorithm would be during the same time period.”
Zillow has long been criticized over its Zestimates, with many property owners disputing the value that the company affixes to homes.
Meanwhile, Zillow was honored at last night’s Webby Awards ceremony in New York. Director of East Coast sales, Justin Scott, was on hand to accept the honor. As is customary, winners are limited to speeches of five words or less.
What do you think of Scott’s speech?