Bill- This is such a great article. It is incredible the way that people cling to and trust a Zestimate because they are a giant. So, so frustrating. Thanks, Geva. Thanks Geva. That is exactly why I created the article. As a real estate agent you get tired of seeing what amounts to blatant misinformation presented by Zillow. This article should set the record straight and help anyone reading understand the facts about a zestimate.
I am glad I fould this again I am sending him the link to your article. People forget, this is just computed generated and often outdated information. Absolutely, only commission seeking real estate agents should be the source of all knowledge when it comes to real estate valuation! And here is a not well-kept secret—many real estate agents use formulas like price per square foot in coming up with their value estimates—and they should!
Clearly, you are not well informed on the topic as almost every major news source in the country has done a story on the inaccuracy of Zillow Estimates. Their estimates are not useful as a guide in the least. Sorry but that is ridiculous. This is evidenced every day by the myriad of price reductions on homes that were not priced properly. By the way price per square foot is one of the worst ways to value a home! There are four classifications of housing including economy, standard, custom, and luxury.
A square foot home could be built in any of these forms. The difference between economy and luxury can be astronomical. Zillow could very possibly be the evil empire. They are really just a marketing machine looking to sell leads to Realtors.
All they truly care about is selling overpriced leads. For homeowners that want a ballpark figure on what their home may be worth the Zestimate may have a place. To get a true picture of a list price for a home an informed homeowner should use a Realtor. There are too many factors that are not public record about a home and homes that have sold that the Zestimate does not have access to.
Excellent article. Finally, someone explains why my home and property keep going down. This article totally makes sense and even gave me a positive spin on my opinion of Zillow.
I hated them before this article. Thank you for this and for being so thorough. Thanks for the compliments Jim. Zillow home values can be so misleading to someone who does not sell homes everyday.
The general public often times relies on information they find on the internet. This is a bad move when it comes to valuing real estate.
There seems to be a bias against Zillow by the agents in this thread. I have recent experience having sold a house in September I had two agents give me their estimates. One local another from a major national agency. I look at the Zillow value of my current home. We are in a private community with 2 miles of private beach, two 18 hole golf courses, an Inn and restaurant on the beach, a pool on the beach with a bar. The home next to us sold for 1. I believe this is fairly accurate.
Zillow seems to value by the entire town, not our private community. Alan do you even hear what your are saying? I will repeat — Zillow home values are completely inaccurate and should never be used for the basis of making any kind of real estate decisions! Bill, I really like and appreciate your blog. I can see the time and energy to put in to these detailed posts. A lot of blogs have OK information but never this thorough. I appreciate your thoughts on how inacurate Zillow estimates are.
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What amazes me sometimes is why Zillow which has a sterling reputation otherwise, would want to publish inaccurate data on their site regarding home values. Those in the know are constantly bashing Zillow estimates and with good reason. Right or wrong, Zillow has created a buyer reality. When sellers agree with Zillow, their homes sell. The largest unexplained reality is why so many quality homes fail to sell at prices well below their Zestimates.
In the case of the latter, the only thing that might be consistently affecting this is a slow descent in price over a long period. Buyers appear to shun these homes. Here you find the most flippers. Ads by Money. We may be compensated if you click this ad. The first step to a new home is doing the numbers and finding out how much you can afford. Mortgage Experts are available to get you started on your home-buying journey with solid advice and priceless information. To find out more, click on your state today.
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Money Moves. Every Saturday, Money real estate editor Sam Sharf dives deep into the world of real estate, offering a fresh take on the latest housing news for homeowners, buyers and daydreamers alike.
Sign Up. Learn more. Back Return to Zillow. Zillow publishes Zestimates for more than million homes across the country. The Zestimate formula uses hundreds of data points for each home to come up with a number. Zestimates are very accurate.
The median error rate for the Zestimate of U. The median error rate for houses that are not on the market is higher, 6. Nearly 98 percent of the Zestimates for homes on the market nationwide came within 10 percent of the final sales price.
So what, exactly, is the Zillow Zestimate? It relies on both public and user-submitted data, and its accuracy is partially dependent on just how much relevant data is publicly accessible. Because homes on the market have more info publicly available, their Zillow Zestimates tend to be a more accurate reflection of value than homes that are off market such as yours, perhaps. Zestimate launched in and was quickly an industry game changer.
Its inception has been both welcome and controversial. Before, this process may have involved identifying a lot of individual data points and talking to a local Realtor. These misunderstandings can have real-world consequences if consumers misprice their homes. But more on this below. If the Zestimate is 7. And 7. The study, which selected homes at random, indicated just how wide this range could really be. The New York homes, though, were all dramatically undervalued by the Zestimate.
So: while the Zestimate can give homeowners an idea of very basic worth, it can also be pretty misleading. Many homeowners worry that when the Zillow Zestimate is such a widely used tool by homebuyers, a lower Zestimate can adversely affect their ability to sell their home. There was even a Zillow Zestimate lawsuit by homeowners for this reason - but the court sided with Zillow.
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