Home Buying in 11746>Question Details

sal, Home Seller in Camp Verde, AZ

How accurate is Zillow for predicting home prices? Zillow has my home rated higher than I have it listed for yet I'm not getting any offers.

Asked by sal, Camp Verde, AZ Thu Jun 27, 2013

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20
Not accurate at all. They are computer generated and no person has ever seen any of the homes with there own eyes only numbers. There is currently a home that Zillow has estimated at atleast 100k over value. They also under value homes too. If you do not currently have a Realtor hire one as they will get you top dollar for your home. Hope this helps.
2 votes Thank Flag Link Wed Sep 18, 2013
agreed!
Flag Fri Feb 27, 2015
Totally agree!
Flag Mon Dec 29, 2014
I agreee
Flag Tue Nov 5, 2013
As a home owner and buyer, zillow is off by quite a bit. I would not trust it. Our home was undervalued by 70,000.
1 vote Thank Flag Link Wed Sep 18, 2013
Maybe a little late to answer this but Zillow or ANY "estimate" done that is strictly computer generated is not accurate at all.
1 vote Thank Flag Link Thu Aug 15, 2013
Don't rely on online estimates, as some are inaccurate nor updated; rather review comps with your agent, recently sold similar properties in the immediate area; see what the data suggests and adjust accordingly. Keep in mind that a home is worth what someone is willing to pay for it; it doesn’t matter what the seller needs or potential buyers can afford to spend; market conditions do matter, as does the immediacy for a transaction to take place.
1 vote Thank Flag Link Thu Jun 27, 2013
Zillow, and other similar sites, that provide "estimations" of property value are fun to check out, but notoriously unreliable for predicting your property's true value.

If your home was flooded today, the walls were filled with toxic mold, or if you decided to run around your house with a sledgehammer and destroy it - your estimate would not change. Conversely, if you upgraded every component of your home with top of the line materials - it would not increase proportionately either.

These sites do not take into account the intangibles, or condition, or properties that can often account for value difference of tens of thousands of dollars, and sometimes much more. Instead, they likely use a "static" formula using tax information - and apply it uniformly to neighborhoods across the country. The bottom line is - it's fun to check out, and might provide a "general" baseline or range of prices - but anyone blindly "trusting" these sites to provide them a true valuation when buying or selling a home are going to likely be off by quite a bit.

I don't know about you - but when it comes to one of the biggest investments a person will ever make - I'd want extensive research done and ensure my numbers are correct. Whether you are buying, or selling - I doubt you'd want to be off by $1000 - let alone 20K or more. If you haven't already, hire a professional who is familiar with your area to do a comparative market analysis for you. This will factor in all of the variables that the sites online cannot.
1 vote Thank Flag Link Thu Jun 27, 2013
Online estimates are completely useless. Zillow and other sites who post these "estimates" have no experience in real estate, have never seen your home and admit to typically being within 20% of the actual value 80% of the time. I've attached a link below that goes into much greater detail about why these "estimates" are worthless.

If you're not getting showings/offers it's because you' are not priced right. Trust me that's all there is.
Homes that are priced right get sold, those that aren't sit on the market.
1 vote Thank Flag Link Thu Jun 27, 2013
The best way to get accurate information is to speak with a Realtor so that they can compare recent sales in the immediate area with homes that are similar to yours. Even though there are comparable homes, no one has a crystal ball as to why a home doesn't sell when it seems to be priced correctly. The price is often set by what the buyer is willing to pay for the home. Many things go into preparing a home to sell and a local Realtor can assist you with everything, including the challenges you may come across.
0 votes Thank Flag Link Mon Dec 29, 2014
HI Bill,

Zillow uses a radius range of home price sales. So if a home sold as a foreclosure or short sale or even sold privately to a family member it will calculate the sale as market data.

Sometimes sales of high end homes throw off the range as well as homes in the bottom price range.
A realtor will do a true Market Analysis and compare your home with like homes.

Apples to Apples.

Best wishes,
Maria
0 votes Thank Flag Link Fri Jul 25, 2014
About as good as the local weather man - in other words Zillow is often time very wrong! In many cases the Zestimate is off by a large amount. Take a look at one of the best references you will find on why Zillow estimates are wrong in most cases.
0 votes Thank Flag Link Wed Jul 9, 2014
Here is a video that should answer your question. It describes how Zillow calculates its numbers and how to check accuracy for your local area.
http://youtu.be/eBwL5IomP18
0 votes Thank Flag Link Fri Jun 27, 2014
I paid for my new home in 2006, $158,000, the latest tax assessment which I received last week is $175,000. The latest Zestimate is $275,000. That's right, a $100,000 difference. Very unrealistic, in my opinion.
0 votes Thank Flag Link Tue May 6, 2014
Actually contrary to what everyone else is saying here I have found in several if not most situations that zillow is very close to the actual value. Maybe this site is full of realtors who are afraid of homeowners getting good knowledge of how much their home is actually worth before they rob them.
0 votes Thank Flag Link Sat Mar 22, 2014
Are you serious? You obviously are seeing what you want to see.
Flag Wed Jul 9, 2014
Sal,

Read the disclaimer on the bottom of the page. It says there is a differential of 20% up or down. So if they say the Zestimate is $300,000, that could mean your house may be worth as high as $360,000 or as low as $240,000! That is a $120,000 differential! I personally work with Zillow very closely but I can tell you this much, they have no business putting prices on homes and many clients and customers have told me so!

Your best bet is to go with a professional you trust and price the home properly with their guidance and reports in black and white reports showing you similar homes within a mile radius and what they have sold for in the last six months. Believe me, we do this for a living. Most of us come within $10,000 initially of what a home's Fair Market Value is. It depends whether you choose to listen.
0 votes Thank Flag Link Mon Sep 9, 2013
No website can replace a professional real estate broker or licensed appraiser. Unlike cars, each home is unique even if they are on the same street. No property is exactly the same as another property.

If you are not getting any offers, there are several possible reasons. Were the photos of your home taken by a professional photographer or your agent's smartphone? Buyers shop on the Internet and will skip homes with poor quality photos.

The main reason for no showings or no offers is that you are overpriced for the market and might need to speak to your real estate agent about lowering the price. An updated comparative market analysis (cma) of similar homes will reveal average prices for sold listings, and those currently on the market. Pay close attention to your competition. Did they lower their prices? Remember, every style home for sale is your competition.

You should also include in your CMA a list of ALL recent sales in your area to determine the prices buyers are willing to pay for homes in your neighborhood. The real proof of what your home is worth is based on the data of actual sales. A competent real estate broker will be able to show you this data.

Another reason could be based on the condition of your home. You will get more offers on your home if it looks brand new. You must make all repairs. Take off points for cracks in walls, and other obvious repairs. A fresh coat of paint goes a long way. Even painting the garage floors and walls will make the home look brand new.

Adjusting the price, painting the home, making repairs, and using professional photos should help you get offers. Good luck with the sale of your home.
0 votes Thank Flag Link Thu Aug 15, 2013
I have use Zillow several times as a reference guide in attempting to arrive at a listing price or a purchase price. On every occasion Zillow zestimates of valuation have been wrong. After carefully verifying comps I also discover Zillow had outdated comps or comps that Zillow show as 2bed 2bath were in fact 3bed 2bath or 3bed 1bath.

The problem with Zillow computer generated valuation is that they do not have actual people on the ground verifying the accuracy of the data they receive, often times from public records, to compute their value.

EXAMPLE: I was about to list a 2bed 2bath house for sale, based on Zillow calculation the house value was 145k. Up on careful analysis, I discover some sellers were splitting or converting dens, Florida rooms and patios into a 3rd or 2nd bedroom and sold these property as such. Problem is, in the county public record, these property are still describe in their original construction. Zillow who collect most of their info from public data gets this bad info to generate value.

An appraiser that appraised the house for the seller 2 months prior was even worse than Zillow. He appraised the house for 100k. Most of the sold comps ranges between 105k to 115k. I visit the area and did my own valuation and list the property for 120k in 6 days I had two written offers for full price with one requesting a 3,000 seller closing cost contribution.

However, some of the information Zillow provide is useful but it has to be verified for accuracy which kind of defeats the purpose, because the info should be accurate in the first place. Often times the price they say your home is worth no one is willing to pay in your market area. Which also give further credence to the idea that your house is worth what a buyer is willing to pay for it.

I have been on both sides as a buyer and as a seller. It is a great feeling when you the seller finally receive that offer you can live with. Best of Luck, Hope You Get a Fair Legit Offer Soon.
0 votes Thank Flag Link Sat Jul 27, 2013
Zillow is notoriously inaccurate for home valuations. I wouild not rely on it at all.

Tom Moser
Keystone Realty USA
http://RefundAtClosing.com
0 votes Thank Flag Link Thu Jun 27, 2013
Zillow is generally not accurate unless you live in a development where all the houses are substantially the same. You said it is listed, have your agent provide you with an updated CMA, focuson the sold comparable homes as that's where true value generally lies.
Tom Brady SFR, e-PRO, SRES, GREEN, BPOR
Lic. R. E. Salesperson
Notary Public, Retired N.Y.P.D. Lt.
631-682-8660
Tom@BradyFamilyRealty.com
http://www.BradyFamilyRealty.com http://www.SuffolkFreeCMA.com http://www.NassauFreeCMA.com
http://www.QueensFreeCMA.com
#1 Listing & Selling Office on Long Island
Charles Rutenberg Realty, Inc.
255 Executive Drive - Suite 104
Plainview, New York 11803
0 votes Thank Flag Link Thu Jun 27, 2013
Zillow and Truia are ENTERTAINMENT websites. ANYONE using them to make real estate decisions are misguided. Actually, real buyers and sellers do not rely on aggregare websites, They have promoted themselves to serious real estate resources. So, don't be concerned. Any real buyer will not be on these sites except for entertainment purposes...much like yourself.
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You should be posting this question on Zillow.
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Why are you not getting any offers?
Are you getting showings? Any interest?
Interest and no offers equals a value mismatch.
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Refer to the conversation you had with your real estate professional while you were seated at the kicthen table and reviewing the data regarding the existing real estate market.
What did the data indicate you must do?
Do you believe the data and respond accordingly?
In what way was the data violated?
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0 votes Thank Flag Link Thu Jun 27, 2013
Answers are:

Not al all

Pretty Bad

Terrible

to name a few!
0 votes Thank Flag Link Thu Jun 27, 2013
DItto - their purported "service" is a dis-service.
0 votes Thank Flag Link Thu Jun 27, 2013
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