Zillow?s Home Valuation Algorithm

It’s Tech Tuesday – our weekly dose of?tech innovations that are rapidly changing the real estate industry.

The article of the week: “Zillow awards $1 million to team that reduced home valuation algorithm error to below 4%.”

Are you familiar with Zillow’s Zestimate?

It’s Zillow’s estimated market value for a home, computed using a proprietary formula.

Well, two years ago Zillow launched?an open contest called the Zillow Prize. This contest challenged users to improve the accuracy of Zillow?s home valuation algorithm.

A winner emerged, and now Zillow expects that the improvements could bring it $1,300 closer to the actual home’s sale price.

Pretty cool, right?