A recent press release reports, “Redfin, the tech-powered real estate brokerage, today announced it has improved the accuracy of the Redfin Estimate and expanded coverage to five new metro areas and several additional property types, including land and multi-family properties. The Redfin Estimate is a calculation of a home’s worth, built on Redfin’s propriety machine learning algorithm that uses billions of data points about properties across the country. Redfin improved the accuracy of its estimate for off-market homes by 70 basis points, as the median error improved from 6.3% to 5.6%. An error rate of 5.6% means that half of all Redfin Estimates fall within 5.6% of the home’s eventual sale price. For a typical $300,000 home, the updated Redfin Estimate is now $2,100 closer to the market value and will be within $16,800 of the final sale price half of the time.”

The release continues, “Among Redfin’s most popular features, the Redfin Estimate gives homeowners, buyers, sellers and real estate agents insight into the value of more than 85 million homes. Homeowners can claim a home on Redfin to track its Redfin Estimate over time and edit facts about their property to further improve the accuracy. When it’s time to sell, the Redfin Estimate is often the starting point in a conversation between a seller and her Redfin agent. ‘Everyone wants to know what their home is worth, which is why the Redfin Estimate drives so many homeowners to visit our site and start a conversation with a Redfin agent,’ said Redfin CTO Bridget Frey. “In real estate, every tenth of a percentage point matters and can represent hundreds or thousands of dollars in a home’s value. Agents know that a smart, data-driven pricing strategy is often the difference between a home that sells quickly with multiple offers and one that sits on the market’.”

Read more at redfin.com. 

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