Home Buying in Santa Clara>Question Details

Kelingdun, Real Estate Pro in Saratoga, CA

Why is this Santa Clara home asking for 300K below Zstimate?

Asked by Kelingdun, Saratoga, CA Mon Sep 30, 2013

3593 MACINTOSH St Santa Clara, CA 95054

Asking: 569K.
Zstimate 878K

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Answers

12
Hi K.
see a thorough discussion on the flaws in automated valuation models, and more valuable home buyer information on my blog in my website...

good luck!
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See "ACTIVE" listings for sale in real-time in Santa Clara
http://americarealtyonline.com/MapSearch#action=doSearch&…

web: http://americarealtyonline.com/
Flavio Tejada, MBA-Finance, Realtor, Broker/Owner
(415) 305-2958
1 vote Thank Flag Link Tue Oct 1, 2013
Well!

I have been selling home in Rivermark Area. This home doesn't fall under the Actual Rivermark. Since the area is adjacent to Rivermark but not really under Rivermark Don Callejon School, the price is low.

Zillow doesn't know of that only a realtor of that area can give you the right picture. Zillow is based on nearby sales.

If you compare Rivermark area, 2 Bed 2 Bath Condominium are going for $500K+. A single family home in Rivermark is 1M+ The other side of Montegue Expressway the story is totally different, however, from Zillow point of view it is way less than within quarter mile area.

So that is why Zillow cannot predict the price. Most of the time Zillow pricing is always conservatively priced.

Call me if you would like to know more of this area. I can drive you to nearby places to show you homes of your dream.

Rivermark area is booming since it is in the heart of silicon valley. Most of the silicon Valley companies are within 10 minutes reach. 49ers stadium is coming and a proposed downtown near the stadium. If all this happens think where the price will go.

Regards,

Roger
925-980-4113
Roger
925-980-4113
0 votes Thank Flag Link Sun Oct 27, 2013
There are many reasons the home is listed at $569,000 many of which we are not priveledged.
However, 'Guesstimates, horoscopes, magic numbers and all automated evealuation systems are simply random number generators with a lot of small print to give the validity. (No one reads the small print and assumes every number the see to be factual.)
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Juliana makes a great point. Zillow states that more that 75% of the time they are off the mark by more than 5%. They actually provide the scale of inaccuracy, which nobody actally interprets as the random number generator it is. Too many believe if there are precise numbers, there must be something factual related to it. There is. But it has NO relevance to someone making a real estate purchase decison. Such numbers are relevant to those making regional or even state wide decisions. The average home buyer is being deceived by such numbers. The exception would be if there have been a sustained volume of sales of like kind property in that area over a period of many months.
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Now, the question begs to be asked..."Why have you not made a purchase offer on such a steal of a deal?"
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"Why are you asking this question on Trulia and not Zillow?"
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"Who or on what will you rely regarding future or current real estate guidance?"
0 votes Thank Flag Link Tue Oct 15, 2013
Annette, you are completely missing the point of the question. He KNOWS these estimates can be way off the mark. The person wanted to know what variable was not calculated correctly with respect to the value of THIS PARTICULAR house.
Flag Sun Dec 8, 2013
I'm not from that area but I can tell you first hand that you should never follow Zestimates for accurate info. they are always way below market price. They've always under valued my home by as much as 25% even when the market was in great shape. You really need to have a local agent do a CMA on that property for you.
0 votes Thank Flag Link Tue Oct 15, 2013
Hi Kelingdun,

I'm actually surprised Gregorio's research shows the property price is in line with the market given Zillow's median error rate within Santa Clara County:

http://docs.steven-anthony.com/ZestimateAccuracy.pdf

-Steve
0 votes Thank Flag Link Fri Oct 4, 2013
Did anyone here actually look up the property? Comps actually support closer to $878 than to $569. The property was also just sold recently to a management company for $550 so it doesn't really make much sense that it's listed again so soon for $569. That doesn't seem like enough to turn a profit especially on something that comps higher.

Very interesting actually.
0 votes Thank Flag Link Mon Sep 30, 2013
If you read Zillow's fine print they are only within 5% of the actual sale price about 32% of the time in Santa Clara County.

If you look at the recent sales around this home they are for much smaller homes. Sales in 2013 for similar sized houses were on the other side of 101. Zillow is probably using comparable sales which aren't very close to this property. This property is not one which a computer could create a good estimate. The property has been used as a rental and is being offered in a way to get everyone interested to respond quickly.

Santa Clara home values are shown at http://julianalee.com/santa-clara/santa-clara-statistics.htm
Santa Clara homes just sold are shown at http://julianalee.com/santa-clara/santa-clara-home-sales.htm

Juliana Lee
Top 2 agent nationwide at Keller Williams Realty, the nations largest
Cell 650.857.1000

Over 20 years experience
Over 1,000 homes sold in Santa Clara County and San Mateo County
.
Web Reference: http://julianalee.com
0 votes Thank Flag Link Mon Sep 30, 2013
Zestimate is never right. You have to look at locate sales. That is probably where they are getting the listing price from. Are you currently looking to buy? Do you have a real estate agent or pre-approval for a purchase loan? These are the first two steps in the home buying process.

Alex Greer
Loan Officer
NMLS #1056079
http://www.TheMortgageOutlet.com

408-352-5147
AGreer@TheMortgageOutlet.com
0 votes Thank Flag Link Mon Sep 30, 2013
I agree with Terri V., a lot of Silicon Valley brokers (but not this one...) are listing properties well below market to draw multiple offers and start a bidding war.
The others are also correct regarding automated valuations... most are based on comps and market trends, which ignore an individuals property's unique location and characteristics. Most of them are 20% to 30% off on their estimate.
0 votes Thank Flag Link Mon Sep 30, 2013
Zestimate is just an automated guess for the value of a property. Sometimes it is close to the real market value but more often it is not. There is no way to account for the condition of the house, ownership history, and many other factors. Look at the area sales here - http://www.trulia.com/property/3090541171-3593-Macintosh-St-… . It looks like the home is being set for a multiple offer situation but I don't see this neighborhood going for close to $900K.
Web Reference: http://talisrealestate.com
0 votes Thank Flag Link Mon Sep 30, 2013
Because ANY automated valuation site is going to be inherently flawed. If you want a real world valuation, speak to some reputable, experienced agents/brokers in your area.
0 votes Thank Flag Link Mon Sep 30, 2013
Looks like agent is drumming up multiple offers. Unless there are some major work required.
0 votes Thank Flag Link Mon Sep 30, 2013
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