More Towson Zestimates are Off -- one by more than $1.5 MILLION!

By
Real Estate Agent with Cummings & Co. Realtors

I realize I have written a lot about the Towson Zestimates and how much they have been off in my area.

It is not that I mean to harp, but as most of my family & friends know, I am an expert when it comes to house values in Towson.

Enter this weekend, with cookouts and family time galore. As usual, the discussion goes to real estate.

"I was passing this on the way to your house - how much is it on for?"

Of course, I am ready with that information:

"$2,495,000."

"How about the small one near Charles Street?" "$615,000."

(I know my area!)

"So, Marney, what is this Zillow Zestimates thing you have blogged about?"

Well, here's the PERFECT example as to the difference between TRUE VALUE and ZESTIMATES.

List price: $2,495,000. Zestimate: $971,000. Off by over $1.5 MILLION!!!!

List price: $615,000. Zestimate: $489,000. (only off by about $126,000).

See the problem????

How can this be rectified? I realize there are disclaimers all over the Zillow site. But shouldn't a product designed to help the public determine a value be at least CLOSE to correct?!

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Tags:
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Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Marney...

I just tell them that these websites are data aggregators and don't really have a clue as to the real value of a property. Nobody EVER goes to the tax assessor and demands a higher value for their property!

May 25, 2009 08:52 PM #1
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Steve Shatsky
Dallas, TX

Hi Marney... I agree.  Zestimates are, at the very least, inaccurate!

May 26, 2009 12:54 AM #2
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Marney Kirk
Cummings & Co. Realtors - Towson, MD
Towson, Maryland Real Estate

Richard, you are absolutely correct! What I found, however, is that BANKS are using this for information! I had one client whose HELOC was reduced because of the site!!!! They can't produce a real AVB -- because that would have been RIGHT! Here's the story here.

Steve, I just can't comprehend how the site can use the PURCHASE PRICE however many years ago to determine CURRENT value?!?!

Thanks!

 

May 26, 2009 07:14 AM #3
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Rainmaker
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Marney Kirk

Towson, Maryland Real Estate
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