On the Zillow website, there's a link at the bottom where you can click to find out how accurate they think they are.
According to Zillow themselves, their median error in San Diego is 9.1%. This means that on a home that would actually sell for $500,000, half of their Zestimates would be between $454,500 and $545,500. And half would be outside the range.
This, to my mind, isn't particularly helpful information. Flip a coin - your $500,000 house is either worth between $45,000 more or less, or it isn't.
You know the real answer for determining how much to ask for.
All the best,
The obvious AND correct answer (as stated in abundance below) is to go straight to the mother lode for local information:
A local, well seasoned Realtor with direct access to the local MLS data. Go to two or three if necessary.
Here is a post that may be very helpful:
Zestimates: Zany, Zesty Z-Evaluations With Zero Z-Value
Side note: The one tragic mistake that sellers make is failing to take the time to discuss their home sale with at least 2 or more Realtors.
I agree with Anna. In my experience, although Zillow and similar website provide some good information, they are not very accurate when it comes to pricing a home. An appraisal is a good idea and also having a few agents provide you with a current market analysis that know your area well. Then choosing an agent you feel comfortable with that has access to many marketing tools to expose your home. I see your zip code is in the Aptos are and I know the area well. I would be happy to take a look at your home and provide a market analysis for you. Please feel free to contact me by email or phone.
Erica Pittman-Gaynor with Keller Williams Santa Cruz here. Online information can be very skewed. The best way to find out the true value of your home in today's market is to have an active Realtor come by your house and do a walk through. This would lead to a very clear picture of what you would have to price your house at to sell. The most dangerous thing for a seller in this market is overpricing the house. The best scenario is to hear about the strategy of pricing your house to bring in multiple offers. People naturally want what everyone else wants. Just as if the house is overpriced and sits on the market people wonder "why doesn't anyone else want it, what's wrong with it?"
I would be more than happy to share some information via email and follow it up with a look at your house to give you an idea of value and if this is the time for you to sell or not.
Don't hesitate to call or email me for more info. I hope this helps, have a great day.