Less than a year after its launch, an update has been made to the algorithm behind the Redfin Estimate, making the automated home-value estimate significantly more accurate. The updated Redfin Estimate is 9.7 percent more accurate for on-market homes and 7.8 percent more accurate for off-market homes compared to its original version launched last year.
As of October 21, the updated Redfin Estimate had a median error rate of 1.80 percent for homes listed for sale and 6.28 percent for off-market homes. This means that when a home that is on the market sells, the Redfin Estimate will be within 1.80 percent of the sale price half of the time; when a home that is not currently listed sells, the Redfin Estimate will be within 6.28 percent of the sale price half of the time.
While we can’t give away the recipe for the secret sauce that made Redfin Estimate that much more accurate, we can say that the updated algorithm takes into account even more information about homes for sale, making it even smarter. Investing in the Redfin Estimate has been a top priority; after launching in December, it quickly became one of the most popular features we’ve ever launched. In the past year, we’ve also seen a huge jump in the number of visits to off-market homes on Redfin.com. We see this as a sign that our industry-leading data science is helping people make decisions about buying and selling homes.
Redfin Estimate Now Available in 41 additional markets including Dallas, Detroit and Minneapolis
The Redfin Estimate is now available for about 65 million homes in 80 metro areas across the U.S., nearly every market Redfin serves, with the exception of a few places where there’s not enough data for us to provide an accurate home value estimate.
Click here for a full list of all the states and counties where the Redfin Estimate is available, along with its median error rates by location.
Redfin Estimate is a Powerful Starting Point in Determining a Home’s Value
The Redfin Estimate’s unparalleled accuracy makes it a reliable starting point for homeowners, people thinking about buying or selling a home and even real estate agents, in determining a home’s value. Beyond the instant, data-driven home value estimate at the top of a Redfin home listing or sale record page, users can click or scroll to the “Redfin Estimate” section, which identifies comparable homes that have sold recently. Evaluating these can help provide a better sense of what a home, with its own unique location, features and quirks, is worth.
We recommend that people use the Redfin Estimate to start a conversation with Redfin agents who are experts in the neighborhoods they serve and have often seen comparable homes in person, and in many cases, offered on or sold them. Redfin listing agents also use the Redfin Estimate as one component in their pricing analysis, and many say the efficiency and precision it provides have contributed to their success selling homes for more money than other brokers.
“I often use the Redfin Estimate as a tool to help me guide my customers through much of the home-selling process, from when they’re just thinking about listing through the offer negotiations,” said Redfin agent Tonya Nelson in Arlington, Virginia. “When we’re just getting started, I use the Redfin Estimate as a gauge to help set a price range we’ll want to list within. I also often pay close attention to the Redfin Estimates of homes in the neighborhood as additional data points when making a pricing recommendation. Because the Redfin Estimate regularly updates to account for homes that have just been listed and sold, my customers and I are able to use it as an up-to-date resource throughout the entire process.”
There is no obligation to work with a Redfin agent to buy or sell a home. The Redfin Estimate is free, and anyone can sign up for Redfin Home Report emails to get monthly updates on a home’s value.