Their estimates are best in sprawling subdivisions where you can draw a given radius around a property and use it to determine mean values.
They are worst in urban areas or near major neighborhood dividers (eg: Boulevards, freeways, malls).
The best example is that one on Myrtle in May of 2009 where the bank did a “zestimate” of nearby properties.
The comps were all south of University and east of the 805. The subject was west of the 805. As a result, the subject property was listed at 174k.
It got about 180 offers and closed at 280k (or thereabouts) for all-cash.
So probably good in La Costa or Temecula but bad in North Park.
My 2 bits.