Can You Trust Home Value Estimates from ZTR?

By
Real Estate Agent with Realty ONE Group Mountain Desert DRE #SA554748000
https://activerain.com/droplet/5kbP

Sometimes both Buyers and Sellers rely on the ZTRs (Zillow, Trulia, Realtor.com and others) to estimate [Zestimates for Zillow] the value of homes. These estimates may be entirely unreliable. Here are some of the reasons theZTR blanket estimates do not work well in Prescott, Arizona.

  • Many lots were sold to individual Builders
  • There are very few "look-alike" homes here
  • No "cookie-cutter" or "ticky-tack" homes here
  • Forest settings vary widely from one part of town to another
  • Prescott is hilly and some of the lots are steep
  • Some have big views, others do not
  • Ages of the homes vary widely, a few are as old as 100 years or more
  • Homes in the pines are mostly 30 to 50 years old
  • Many homes have been remodeled or updated

Questions you should ask when shopping for a home in Prescott

  • How steep is the lot? – there are very few nearly level lots
  • How many stair steps to get to the main living level?
  • How many levels in the home?
  • How steep is the driveway and how long is it?
  • Does the driveway face north or south?
  • Do you want to live in the pines?

If you come from Phoenix or other area where there is no snow, you probably would not think a north-facing driveway versus a south-facing driveway is significant. However, it does make a huge difference when there is snow on a steep driveway. The last home I had in the pines had a steep driveway and faced to the north. What little snow we get in Prescott usually melts in a day or two but not so on a driveway that is shaded in the winter.

Just a cursory analysis shows that there may be a $50,000 to $60,000 premium for a 2,000 sq-ft home in the Ponderosa Pines compared to a home that is not in a "piney" area. Doing meaningful CMAs in Prescott is very difficult. I do not routinely do CMAs as it is so difficult to account for or adjust for the factors mentioned above.

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate General Information
Location:
Arizona Yavapai County Prescott
Groups:
Almost Anything Goes
Local Expert
Old Farts Club
The Art Of Marketing You
Tags:
prescott arizona
ponderosa pines
pinon pines
juniper trees
yavapai county
ztr
zestimates

Spam prevention
Show All Comments
Ambassador
2,329,338
MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Yes, these formulas are "fun" and entertaining, but I wouldn't bet real money on them.

Jul 23, 2019 09:54 PM #1
Rainmaker
544,742
John Mosier
Realty ONE Group Mountain Desert - Prescott, AZ
Prescott's Patriot Agent 928 533-8142

Michelle Carr Crowe,Altas Just Call...408-252-8900! 

I do not find anything the ZTRs do as fun and entertaining. They all make the life of a real estate professional more complex by spreading so much untruth.

The same goes for the real estate reality shows. They make the life of a real estate agent look way easier than it really is. When did you last show a Buyer party and get a decision in showing only three houses?

Jul 23, 2019 10:06 PM #2
Ambassador
2,329,338
MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

John,

I meant that BUYERS find these apps and RE shows entertaining-I certainly don't.

Jul 23, 2019 11:25 PM #3
Rainmaker
2,897,413
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

The algorhytms provided by "Z" don't seem to measure of to feet on the ground by a competent real estate professional.  I recall one instance where "Z" apparently had considered mobile homes in a nearby park as comps for a nice custom home nearby.

Jul 24, 2019 05:26 AM #5
Rainmaker
2,353,590
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning John Mosier - these Zillow or other estimates rarely come close.

Jul 24, 2019 06:54 AM #6
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
544,742

John Mosier

Prescott's Patriot Agent 928 533-8142
Ask me a question
*
*
*
*

Additional Information