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When ZILLOW and CYBERHOMES estimates collide!

By Pacita Dimacali

Real Estate Agent with Alain Pinel BRE 01367196

October 24, 2009 05:38 PM

To illustrate a point about the value of using a comparative market analysis by a REALTOR, I pulled up the information on two of the most popular places where people go. To say that the difference is startling would be an understatement!

This house in Los Angeles is owned by my client who is debating whether or not to sell the house to his relatives who are renting from him so that he can buy his own house here in Alameda.

To get the market value, I advised him to get a CMA from a REALTOR. But I had to show him what it would be like to get the estimates from two of the most popular sites. And here's what we found.

CYBERHOMES

ZILLOW

WHAT A DIFFERENCE!

My client was amazed at the difference in the estimates. At least he now knows that going to either site isn't going to give him the information he needs to make an informed decision. Although these sites are sources of information, they are not or should not be THE best and only resource.

This was a fabulous way to make that point!

REFERRAL

And this was also a good time to let him know that as part of my service to him, I will find a REALTOR who can get him the information he needs.

Since I am a member of several networks, one of which is Active Rain, I have already engaged a REALTOR who had sent me a referral earlier this year. YEY!

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Brian Lee Burke

Kenna Real Estate - Lone Tree, CO

Broker & Advising Expert-Kenna Luxury Real Estate

Pacita - Yikes! That is a huge difference. I agree what a great way to make the point. ~Rita

Oct 24, 2009 05:49 PM

Pacita Dimacali

Alain Pinel - Oakland, CA

Alameda/Contra Costa Counties CA

Rita

I have done comparisons between the two, and always include them with my listing package just so they know I do my homework. And when the difference is this startling, they get the message.

Oct 24, 2009 05:53 PM

Dan Tabit

Keller Williams Bellevue - Sammamish, WA

Our clients look at these sites, so we have to. I tell my clients that 1/3 of the time they are close, 1/3 they are high, 1/3 they are low, that means 2/3rds of the time you can't rely on them. I'll keep track of your example, its stunning.

Oct 24, 2009 06:19 PM

Guy Thomas

WR Starkey Mortgage - Colorado Springs, CO

Wow Pacita, that is staggering. I have never compared the two services like this. I also think you made your point. A local professional is still the best source of information.

Oct 24, 2009 06:21 PM

Dan --- like you said....a lot of our clients visit these sites. So wherever they are, that's where we should be. By showing them that we are on top of things, it only serves to cement our reputation as the subject matter experts.

Guy --- I was going to try the eappraisals site, too, but they wanted me to register. So I just stuck with these two sites. They've always been different, but I haven't seen any of the properties I've researched to be so vastly different. It was an amazing way to make the point.

Oct 24, 2009 06:32 PM

Jim Hale

ACTIONAGENTS.NET - Eugene, OR

Eugene Oregon's Best Home Search Website

Pacita -

Even Zillow admits publicly to a margin of error on their zestimates of ten percent. They are often way off the mark.

But Dan's right we do have to be knowledgeable about them and meet the objections they create. Duplicating the results of this sample would be easy...and powerful. Thanks.

Oct 24, 2009 07:53 PM

Jim --- as mentioned, I always include both Zillow and Cyberhomes estimates in my listing presentation. Another way to illustrate the value of a CMA prepared by are knowledgeable REALTOR. You may want to pick random addresses and see what you find.

And yes, Zillow admits to a margin of error...but some property owners and prospective buyers seem to be oblivious to that fact and always manage to quote Zillow everytime they try to negotiate.

Oct 24, 2009 08:17 PM

Sally K. & David L. Hanson

EXP Realty 414-525-0563 - Brookfield, WI

WI Real Estate Agents - Luxury - Divorce

Wow...quite a difference...this sounds like the Antique Road Show program when they tell you Grandma's_______is worth $5-$10,000 what's up with that...or this...it's worth twice as much or half as much...the market decides...gotta wonder who the decision makers were here !

Oct 24, 2009 11:38 PM

Kathleen Daniels, Probate & Trust Specialist

KD Realty - 408.972.1822 - San Jose, CA

Probate Real Estate Services

Pacita: Yey is right. This type of data/information is so powerful. It is difficult to deny the published information sitting in front of us ... side by side comparison. You established so much credibility ... congratulations on another job well done!

Oct 25, 2009 03:11 AM

Robert Savage

Bakersfield Property Solutions - Bakersfield, CA

Bakersfield Short Sales, Property Management, Cash

Before I go to a listing appointment I always study the zillow listing for the property. If the zillow estimate is reasonable then great. But if it is not I need to know why because my potential client will usually know what zillow says. I view this as a great opportunity to help my client understand the benefit of hiring a professional who really understands the local market.

Oct 25, 2009 03:39 AM

Sally and David --- yup. The difference was glaring!

Kathleen --- now, more than ever, we have to utilize all the tools at our disposal.

Robert --- In my listing presentations, I include printouts of Zillow and Cyberhomes estimates so that I can compare the info with what I am presenting. If the seller ddn't know about those resources, I still come out looking like the expert for knowing about tese resources.

Oct 25, 2009 04:31 AM

Lottie Kendall

Compass - San Francisco, CA

Helping make your real estate dreams a reality

Fabulous way to make a point -- and what a difference! I like your idea of including that in your listing presentation packet.

Oct 25, 2009 07:54 AM

When ZILLOW and CYBERHOMES estimates collide!

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