That's what I have found. A search on my IP shows me approx. 30 miles away. Sometimes after I reboot my modem, it shows me somewhere else, not close to my physical location.
I think to get a precise IP location (correct me if I am mistaken) one must know the ISP being used, then 1) be very persuasive in the request (doubtful unless you are LEO and work close with the ISP security detail) or 2) obtain a warrant or court order to present to the ISP.
If someone threatens to claim they know your IP, just "poo-poo" them and move on.