Zillow’s Home Valuation Algorithm
It’s Tech Tuesday – our weekly dose of tech innovations that are rapidly changing the real estate industry.
The article of the week: “Zillow awards $1 million to team that reduced home valuation algorithm error to below 4%.”
Are you familiar with Zillow’s Zestimate?
It’s Zillow’s estimated market value for a home, computed using a proprietary formula.
Well, two years ago Zillow launched an open contest called the Zillow Prize. This contest challenged users to improve the accuracy of Zillow’s home valuation algorithm.
A winner emerged, and now Zillow expects that the improvements could bring it $1,300 closer to the actual home’s sale price.
Pretty cool, right?