About 2-3 years ago (before we bought last year) I started doing my own study on home for sale versus the Zillow Value and the actual sales price. I tracked about 30 from point of listing through the actual sales price.
Final sales price (on average) was right on track at less than 1% from the Zillow estimate when house when on market. Of course that's an average. The standard deviation was 7% (so 2/3rds of the time the final sale price was within 7% of the Zillow estimate).
I generally trust Zillow's metrics but also recognize there are some ways their algorithm can be flawed.
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