Tag Archives: Zestimate

Zillow Launches New Neural Zestimate, Yielding Major Accuracy Gains

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New model helps Zestimate better react to hot housing market and improves median error rate to 6.9% nationally

Seattle, WA – June 15, 2021 (PRNewswire) Zillow today launches significant upgrades to its Zestimate® home valuation model.  The changes allow the algorithm to react more quickly to current market trends and improve the national median error rate to 6.9% — an improvement of nearly a full percentage point for more than 104 million off-market homes. 

The new Zestimate algorithm leverages neural networks, the latest machine learning approach, and incorporates deeper history of property data such as sales transactions, tax assessments and public records, in addition to home details such as square footage and location.

Neural networks are artificial intelligence systems that imitate how the human brain works. They are able to map hundreds of millions of data points efficiently, drawing connections among inputs and using the relationships formed to produce or predict an output. In the case of the Zestimate algorithm, the neural network model correlates home facts, location, housing market trends and home values. 

As a result of this update, the Zestimate can now react more quickly to dynamic market conditions, providing homeowners with a more accurate estimate [prediction] of a home’s current value. In addition, transition to a neural network-based model will reduce Zestimate processing time.

“Since we introduced the Zestimate in 2006, we have never stopped innovating in order to provide consumers with the most accurate home valuations,” said Dr. Stan Humphries, Zillow chief analytics officer and creator of the Zestimate. “The new architecture we’re debuting today represents another significant step forward in our efforts to harness big data to create more certainty for consumers, which leads to better decisions.”

Fifteen years ago, the Zestimate gave people instant access for the first time to an estimated value for millions of homes across America for free. Over the past decade and a half, Zillow has released multiple major Zestimate algorithm updates as well as incremental improvements between major upgrades, and now calculates valuations for more than 104 million homes across the country.

As a result of the company’s increasing confidence in Zestimate accuracy, in February Zillow began using the Zestimate as a live, initial cash offer through its home buying program, Zillow Offers. The Zestimate is an initial cash offer on about 900,000 eligible homes across 23 markets. With this latest update and increased Zestimate accuracy, the number of homes eligible for a cash offer will likely increase by 30%.

Applying a neural network model to a national real estate dataset was an innovation used by the winning team of Zillow Prize, the two-year, $1 million data science competition that included more than 3,800 teams from 91 countries working to improve the Zestimate.  One member of the team, Jordan Meyer is now a senior applied scientist at Zillow and works on home valuations for Zillow Offers.

About Zillow Group
Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life’s next chapter.

As the most-visited real estate website in the U.S., Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting or financing with transparency and nearly seamless end-to-end service. Zillow Offers® buys and sells homes directly in dozens of markets across the country, allowing sellers control over their timeline. Zillow Home Loans™, our affiliate lender, provides our customers with an easy option to get pre-approved and secure financing for their next home purchase. Zillow recently launched Zillow Homes, Inc., a licensed brokerage entity, to streamline Zillow Offers transactions. 

Zillow Group’s affiliates and subsidiaries include Zillow®, Zillow Offers®, Zillow Premier Agent®, Zillow Home Loans™, Zillow Closing Services™, Zillow Homes, Inc., Trulia®, Out East®, StreetEasy® and HotPads®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).

SOURCE Zillow Group

Zillow to Award $1 Million Prize for an Improved Zestimate Later This Month

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The winning team beat nearly 4,000 teams from around the world and bested a Zillow benchmark model

Seattle, WA – Jan. 10, 2019 (PRNewswire) After almost two years and submissions by nearly 4,000 teams, the results are in. On January 30, 2019, Zillow will reveal the winner of the $1 million competition to improve the accuracy of the Zestimate. Zillow will also award $100,000 to the second-place team and $50,000 to the third-place team, officially concluding the Zillow Prize competition.

Zillow Logo

In the quest for the $1 million Zillow Prize, the winning team had to beat the accuracy of a Zillow benchmark model when evaluated against real-time home sales between August and October 2018. Their algorithm also needed to score the largest improvement to the Zestimate home valuation’s accuracy among all the final competitors.

“Awarding the Zillow Prize is nearly two years in the making, and we’re thrilled to finally be naming the champion,” said Stan Humphries, creator of the Zestimate and Zillow Group’s chief analytics officer. “We’ve been impressed by the imagination and ingenuity all our competitors showed in improving the Zestimate. The winner’s improvements to the Zestimate will not only give people more accurate home valuations and knowledge about one of their biggest life investments, but also show the innovation that’s possible when we crowdsource ideas and put these types of challenges into the hands of data scientists around the world.”

Launched in May 2017, Zillow Prize attracted more than 3,800 competing teams representing 91 countries. To date, the contest has become one of the most popular machine learning competitions ever on Kaggle, the platform administering the contest.

Designed to be a starting point to help people estimate the value of a home, the introduction of the Zestimate in 2006 marked the first time homeowners had instant access to information about their homes’ estimated values, for free. Today, with valuations on more than 110 million homes across the U.S., constantly improving the Zestimate’s accuracy is a top priority for Zillow as it helps homeowners understand the value of what’s likely their largest asset, their home.

The Zestimate’s current margin of error is 4.5 percent nationwide. Zillow Prize, together with Zillow’s team of data scientists, helped bring to light new approaches for pushing the margin of error even lower, reaffirming Zillow’s commitment to helping people make the best decisions about real estate.

Visit www.zillow.com/zprize to learn more about the finalist teams.

About Zillow

Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with great real estate professionals. Zillow serves the full lifecycle of owning and living in a home: buying, selling, renting, financing, remodeling and more. Zillow Offers provides homeowners in some metropolitan areas with the opportunity to receive offers to purchase their home from Zillow. When Zillow buys a home, it will make necessary updates and list the home for resale on the open market.

In addition to Zillow.com, Zillow operates the most popular suite of mobile real estate apps, with more than two dozen apps across all major platforms. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z and ZG) and headquartered in Seattle.