Is Zillow accurate? Are Zestimate's even close to the right price?

By
Real Estate Agent with Lyon Real Estate, Fair Oaks CA (Sacramento Area) DRE# 00809499
https://activerain.com/droplet/4y5B

How accurate is a Zillow Zestimate? Like what's in grandmas's shopping cart - DEPENDS.

If you live in a monstrous standard subdivision of homes, all built by the same builder, from 5 floor plans, with little variation, your Zestimate might be pretty accurate. But if you live in a custom area, with assorted lot sizes and varying size of homes, forget it.  Zillow won't even get close.

Zillow works on the averaging principle. Using a fancy schmanzy math equation that is uber top secret, Zillow crunches the numbers from past sales (comps) to statistically guess at your home's value.  Without even seeing it.  Without knowing if you have an outdoor kitchen or a sink hole in your backyard.  Without knowing if you have green shag, or Brazillian cherry hardwood floors. Or a new slate roof. It doesn't know squat - except your square footage and # of bedrooms. so if your surrounding homes are like yours, your Zestimate might be close.

Let's zestimate how tall your Realtor will be.  Hmmm....  American woman, 2015, "comps" say she will be 5' 4". But I show up to list your home and  I am 5'10".  "WHAT??? That is 9.1% off! Something's wrong. You can't be that tall."  If Leigha shows up instead, she is 6' 2" (OK in heels, but still).  Her Zestimate is a whopping 11.5% off.

I guess you can't talk specifics with averages, afterall.

As a Realtor, do I use Zillow?  You bet.  Before you called me to list your home, you already ran your Zestimate. You've checked.  Now I know what info to bring, to dispel the gospel of Zillow.

In the Sacramento area, where I sell homes, Zillow claims they can predict the sales price within 20% on 85 out of 100 homes.  WHAT?  That is terrible.  If they guess a home's value at $300K, 15 % of the time it will sell less than $240K. Or for more than $360K. They guess within 5% of the sales price only 1/3 of the time. These are Zillow's own numbers. It's on their website. On the bottom "How accurate is the Zestimate". Their. Numbers. Are. Not. Real.

So how do your price your home? Call an experienced Realtor who looks at your home and its features, then compares it to recently sold homes of similar size,  condition, and features, sprinkles in the market demand from buyers, the tops it off with her experience honed over decades of pricing homes, and VOILA. Your price.  

THAT is how you price your home.

 

Posted by

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Your Fair Oaks Realtor for homes for sale in Fair Oaks and the Sacramento Area of California.... I'm your gal (Sally Dunbar). I'm occasionally knowledgable, periodically humorous, and always willing to tell you everything I know.  What more could you ask for?

Here are the newest listings for Fair Oaks, Orangevale, Citrus Heights, Folsom, Carmichael, Gold River, and Roseville - all CA, of course.

More Blog posts by Sally Dunbar at www.FairOaksHomesAndMore.comSally's Website at www.sallydunbar.com to search for all homes in the MLS, and for tons of information for buyers and sellers.  You'll find schools information, market statistics... you name it, I got it!  Come visit me.

 

 

 

Sally Dunbar, 35 year Broker Associate, Lyon Real Estate, Fair Oaks, CA (916) 524-1548, SDunbar@GoLyon.com "Your Fair Oaks Realtor"

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Mirela Monte 03/27/2015 10:21 AM
Topic:
Home Selling
Location:
California Sacramento County Sacramento
Groups:
Zillow Discussion Group
Lyon Realtors
Club Chaos
Diary of a Realtor
Bartender, Make it a Double

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Ambassador
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

I think banks are using Zestimates now instead of BPO's when they are determining their acceptable sale prices.  Nothing I can prove, just a hunch from some WAY out there numbers I've had them request lately.  If they aren't, the BPO agent is using Zillow.

Feb 10, 2015 10:18 AM #1
Ambassador
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Featured in the group:  BARTENDER, MAKE IT A DOUBLE.

Feb 10, 2015 10:19 AM #2
Rainmaker
218,350
Sally Dunbar
Lyon Real Estate, Fair Oaks CA (Sacramento Area) - Fair Oaks, CA
Fair Oaks Realtor - Fair Oaks Homes for Sale

Chris Ann - they claim it is their own automated evaluation system, but it it certainly the same principle as Zillow, if it isn't actully that site. How can you atuomate a price, for crying out loud. and I think I'll have that pink martini and go ponder it.

Feb 10, 2015 10:21 AM #3
Anonymous
Leigha Burton

LOVE IT! Amen sista!

Feb 13, 2015 06:31 AM #4
Ambassador
529,429
Mirela Monte
Buyers' Choice Realty - North Myrtle Beach, SC
Myrtle Beach Real Estate

LOVE IT!

Why hasn't this been featured?  

I am definitely reblogging this!

Thank you for an accurate, funny and witty post!

 

Mar 27, 2015 10:15 AM #5
Rainmaker
506,933
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

Hi Sally,  A definately required reminder.  Zillow is a "starting place." Zestimates are not Zappraisals.  We will never be replaced by an algorithm. 

Mar 27, 2015 11:21 AM #6
Rainmaker
797,359
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Sally - Couldn't agree with you more. Zestimates are what every home buyer and seller use as a gauge, but they don't understand how inaccurate it may be. They need to ask a Realtor.

Mar 27, 2015 03:00 PM #7
Rainmaker
1,478,411
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

The experienced agent will compare ''apples to apples'', Z. offers a fruit salad tossing all properties in one bowl, chopping and dividing in the same way.

Aug 28, 2015 04:27 PM #8
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Sally Dunbar

Fair Oaks Realtor - Fair Oaks Homes for Sale
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