A Zestimate (TM) is NOT an appraisal. It is just computer analytics of tax records (in short.)
With my last week of bumping around and posting four listings I have found that all Zestimates were off, three lower than they should be and one higher. Three were off by less than 10%, one was 26% off (that was the low end of the scale too!)
Now I am not an appraiser nor do I play one on Active Rain, I am a Realtor with access to the same information that Zillow has. It appears that information still needs to be looked at with eyeballs and analyzed by a human brain and cannot be computer generated to arrive at a conclusion.
Oddly enough the listing I have that Zillow ranks 26% under it's real value has two offers sitting on the table well above it's Zestimate (TM) in a category with 36 months inventory. The listing that I have priced below the Zestimate (TM) has nothing in a category with 22 months inventory.
Even though Zillow is free I just want to get a "buyer beware" out there and to take it for what it is: with just a grain of salt. If you are considering selling your home yourself, you should probably still get an appraisal or several Realtor opinions prior to pricing. The National Community Reinvestment Coalition has filed a complaint against Zillow with the FTC. Arizona Appraisers have ordered a cease and desist. You can see in my first point of a post I wrote in December, I could see this coming from a mile away.
David Gibbons is out there setting the record straight that the Zestimate (TM) is not a perfected science. He claims there are 4.1 visitors to zillow a month which makes it attractive to still market your homes on Zillow. I found the hits that I receive on Zillow are OK. Not great, not bad: Craigslist, Localism and Point2 generate more traffic still.
All the Best,Realtor®
Nevada Realty Solutions - Your Dream, Your Investment, You\'re Home!
8942 Spanish Ridge Avenue
Las Vegas, NV 89148
direct: 702-580-1783
fax: 702-995-8237
Renee@ReneeBurrows.com
http://www.ReneeBurrows.com
Renee,
I second that. That's what it is, a Zestimate. If you really want to get an accurate value for a property, one of those comparable assessments, a CMA, is still gold standard. Zestimate is good to get a cocktail party conversation up and running.
In my area I have found the comps Zillow uses are not comps at all. I have come across comps being used for a 3 bedroom 1.5 bath built in 2006 with a 5 bedroom 1 bath built in 1950's. I too take Zestimates with a grain of salt.
Great Post...I have to give them credit for improving their site. When they first hit the web they were all over the place with no ability to make any kind of adjustments to their guestimate. Now, you can add things such as improvements and corrected mistakes.
R.B. "Bob" Mitchell
ValueList Real Estate Services, Inc.
Renee,
Hello there, we know that zillow it is not good for appraising :) it gives you a vague idea, just that , good post :)
I did a little comparaison awhile back and here is what I came up with...
1st Number is the actual sale price and the second is what Zillow came up with.
$190,000 Vs. $234,750
$339,500 Vs. $345,948
$415,000 Vs. $622,196
$185,000 Vs. $254,437
$150,000 Vs. $218,841
$373,900 Vs. $447,498
$920,000 Vs. $1,200,000
The second one was pretty close but the rest...
Esko: Most definitely!
Jaclyn: Same here. I have seen bad comps like that when there are more than enough model match comps existing already.
Brandon: We are all in good company!
Ryan: Prices have changed here too but I guess I was expecting them to be too high, not the opposite!
Laura: IT is most definitely scary!
Herb: I agree with you, especially about taking overpriced listings!
Bob: I cannot figure out how to change out bad comps when there are recent closed model matches. This is a huge flaw! Homes with less square feet sell at a higher price per square foot than homes with more square feet. Single story homes command a higher price also because of their demand for them. The home that was 26% undervalued had model matches and no other significant improvements over the others since they are all built the same ~ same upgrades, same appliances, etc. The only difference may be a view but I cannot guess on how they arrived at their price. All comps were above the Zestimate even if the square footage was lower. A huge head scratching for me! The only way I could make the Zestimate accurate would be to physically change the comps! It would be relatively easy to put in an address as they obviously have access to the tax records!
Thesa: Thanks for stopping by :)
Ray: I wish they would bring back the range estimates that they used to have. Maybe I am hallucinating. Maybe they didn't have a range :)
At least your #'s are higher :) I have to send out comps every time someone checks the zestimate on something to justify my price.
Brian: I agree with you but at the same time I struggle ethically with providing content for a site that is obviously inaccurate!
Hi Renee,
I do not think the public who go to Zillow....really know that the information they provide is not accurate enough...I have seen so much incomplete information...I looked at my own house and was confused.
Chris: I miss you but I have kind of been smitten by localism too so I feel your pain and excitement!
Neal: Same here!
Renee.... Brian hit the nail on the head. But I agree... we need to educate the consumer. And as David said, they do have a marketing program that is creative.
I just wrote a post in regards to who you should point the finger at in regards to the foreclosure market. Again, we need to educate people. Even though we do see blog after blog on some of the same topics, we need to keep writing them so more of the public will see them.
Desiree: LOL!
David: That is what is dangerous.
Jeff: You have definitely made your point clear that you dislike repeat posts and this one is definitely geared for the LV market and Localism.
Aaron: Thanks! Yes, condos definitely have a lot premium which may be taken into consideration. Smaller condos (that I deal with)=proximity to greenbelt and pools. High Rise Developments (that you deal with)=Views & Height!
Maggie: ROFL! Throwing gum to the wall and hoping it sticks!
Renee.... I am sorry if you took what I said the wrong way. I guess what I am trying to say is.... yes, I disliked posts that seemed repeated, but more duplicated with the same info per se, but not copied. But that was the past and more so, because many seemed the same.
Getting back to your post. I did mention that we need to educate the clients more so than ever before. And I guess I didn't state it in my comment and I apologize for not mentioning that you did a good job at bringing this up. It was well-written, because it was short and to the point. Something that I am not always good at.
Again, sorry if you took it the wrong way. As a few people that I have talked to on here, some of us sometimes aren't clear in what we say, may it be our posts or our comments. thanks.
Sorry, you mentioned that in your post. Its late here and my eyes aren't working right. I'll be quiet now.
:-)
Jeff: No harm no foul.
Rudy: Rudy!!!!!!!!!! Never be quiet! I get that way too!