I’ve been selling real estate part time for over 3 years now. Your question is a lot like what I, and other agents keep hearing from sellers and buyers all the time.
There are many reasons why the two companies estimates for the same properties don’t often match (and are sometimes ridiculous compared to an actual sales price). So it’s complicated but comes down to this :
• Both Zillow & Redfin have access to Mulitiple Listing Service (MLS) data, but that info is based on reported sales figures for generally similar properties within the same geographic area. If your home is not typical of other homes in your neighborhood, or if nothing in your area has sold in over a year, MLS data can be inaccurate when it comes to a realistic valuation.
• After getting the MLS stuff, each company uses it in a different way and for different purposes. Both have proprietary computerized algorythms that sort MLS info along with other factors they choose according to their own priorities. The biggest difference may be that Redfin is a full service nationwide real estate brokerage that uses there estimates to support their business with buyers & sellers. Zillow is not invloved in direct sales, and foucuses entirely on data analysis as it’s primary business.
• Zillow provides estimates on about 11O mil homes nationwide, while Redfin covers roughly 74.5 mil. Over the past year Redfin claims their estimates have had an erorr rate of approximately 3%, while Zillow says they’re wrong 1.9% of the time.
• Overall what local agents unafilliated with either company usually see when comparing actual closing sales in their markets is that Redfin estimates tend to be low, while Zestimates are generally on the high side. The biggest factor in the difference is that most homes in both company databases have been off the market for more than 5 years.
Bottom line is be realistic, and work with a local realtor who actually knows the market in your area, and will take time to learn what the value of your poperty should be.