Zestimate Analysis for Dunwoody/Chamblee Area

By
Real Estate Agent with Atlanta Communities Real Estate Brokerage GREC #208281

It's been several years since I did a Zestimate analysis.  I am working with a buyer who seems to put a lot of trust in Zestimates in determining what price to offer on a home.  Of course, buyers will always trust a Zestimate instead of any data you put in front of them to the contrary.

So I thought I would see for myself if Zestimates hav gotten any better in the area that I'm working with my buyer.

I've heard experts say that a home is only worth as much as someone is willing to pay.  Therefore, I took all of the sales over the past 30 days in the Dunwoody/Chamblee area and compared the actual sales price to the current Zestimate for each property.

There were a total of 74 sales, single family homes.  I took out the seller paid costs and only compared the net sales price to the Zestimate.

Zestimates differed from the net sales price by -32% to +45%.

I would say that to have a Zestimate be worth anything, it would have to be within +/-5% most of the time.  This would give a range for  a $400,000 home to have a Zestimate between $380,000 to $420,000.

Of the 74 sales, only 19 (25%) fell within this +/-5% price range.

That means that 75% of the Zestimates are more than 5% off from what the actual sales price was.

To me, that is not good enough to be of use as a serious valuation tool.  

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About the Author:  Tim Maitski has been a full time Realtor since 1999. He has sold several hundreds of homes in areas around metro Atlanta.  Tim started with RE/MAX Greater Atlanta and is now with Atlanta Communities Real Estate Brokerage.

 

Along with blogging on ActiveRain, he provides one of the best real estate websites in Atlanta at www.HomeAtlanta.com .

 

His proprietary  "Maitski Line Reports" chart out the absorption rates over the past 14 years in 37 different market areas.  Know when it's a good time to buy or a good time to sell.    

 

His online Property Tax Calculator allows you to compare property taxes in many counties and cities around the Atlanta area.  He provides the Atlanta MLS Power Search Tool that allows searches of homes using over 35 specific criteria.

 

Over the years, Tim has optimized his business so that he now can offer a huge 50% commission rebate to his buyers.  The more experience one gets, the easier the job becomes.

 

Tim also has a "Five Days to Sold" System that uses an intensive marketing blitz to create a showing frenzy that creates urgency and offers.

 

Tim is always looking to LinkIn with anyone who is interested in building their social network.

 

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Rainmaker
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Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Tim - Great analysis, and just more proof that the Zestimate is not anything worth taking seriously. You could throw darts at a target and come up with a closer estimate of a homes value.

Nov 04, 2015 01:41 AM #1
Rainmaker
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Tim Maitski
Atlanta Communities Real Estate Brokerage - Atlanta, GA
Truth, Excellence and a Good Deal

Troy,  I think where many people getted fooled is that a few Zestimates acually come very close to the real value and then it's stuck in their head that Zestimates are reliable.    I did this kind of anaylysis about 5 years ago and came up with the same kind of range.  I really thought that Zillow would have improved with their Zestimates by no but I just don't see it in my data.

Nov 05, 2015 09:23 PM #2
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Rainmaker
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Tim Maitski

Truth, Excellence and a Good Deal
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