Home Selling in 32566>Question Details

Michael Swahn, Home Seller in Navarre, FL

Are the Zestimates on Zillow a fair assessment of a homes current market value?

Asked by Michael Swahn, Navarre, FL Fri Mar 6, 2009

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4
Hello:

Zillow relies primarily on public record information, like house size, assessed value, age, etc. It then uses a lot of proprietary formulas to come up with the zestimates. But these are things it doesn't use:
A) Road noise: Is your home noisy? Zillow doesn't know that. Buyers do.
B) Is your lot steep? Zillow has no way to evaluate the steepness of a lot, other than the town assessment info, and that's not very reliable.
C) Floorplan: Buyers like certain floor plans, and dislike others. This can be a 20% swing in home value alone, and there's no real mathematical way to capture this. A recent sale would, but even that isn't reliable.

There's other "intangibles" that make things difficult. You'll find Zillow does very well in dense areas where the housing is similar, but in rural areas, where the housing is less uniform, it can miss market prices by 25% or more.

Matt
1 vote Thank Flag Link Fri Mar 6, 2009
Michael,

Simply stated, all you need is an understanding of the general location to determine many Zestimates are based on inappropriate comps. generally associated with location of the homes.

When dealing with this site it is important to take care using the information that is provided. It's a great site....when used in combination with your personal information about the location.

Be cautious.....
0 votes Thank Flag Link Sat Mar 7, 2009
Michael,

As zillow states and Matt implies in his post, a zestimate is just a starting point, and nothing more.

http://www.zillow.com/howto/DataCoverageZestimateAccuracy.htm
0 votes Thank Flag Link Fri Mar 6, 2009
I personally think it's pretty off. It said my aunts house (inherited property) was worth 110k but we put it on the market for 80k after getting three different CMAs from three diff companies.

It also says my house is about 11k higher than I paid for it in November. The price I paid was a pretty good comp to the others in the area.
0 votes Thank Flag Link Fri Mar 6, 2009
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