What about Zillow's Zestimates?


#1

One of my neighbors’ house Zestimate is $1.1M It is in a horrible state and according to him not worth more than $600k.

How credible are Zillow’s Zestimates? Are they always way higher that the real price?

23%20AM


#2

Use redfin, theirs is a bit more accurate generally.


#3

Depends on neighborhoods :slight_smile:


#4

Maybe he figures the structure has no value and is only allowing for land value.

Appraisers will use recent comparable. Sellers will find out what their market price is when they sell.

Zillow isn’t bad, but there are many things they don’t know. I doubt they know the condition of the house and they can only work off of official records. The more cookie cutter the neighborhood and the younger it is, the more likely the estimate is accurate.


#5

Use for trends only


#6

Are you kidding? Redfin estimate is a sick joke.


#7

The best comp is spending 5 minutes and looking at previous sales.


#8

Isn’t Redfin a subsidiary of Zillow?

Anyway, Zillow and Redfin provide the same value to the $! $1,108,678 !!

It seems that the market is somewhat bumpy as according to Zestimate: “the value has decreased by $47,946 in the last 30 days” That’s 4% !

=> The Zestimate for this house is $1,108,678, which has decreased by $47,946 in the last 30 days. The Rent Zestimate for this home is $3,500/mo, which has decreased by $20/mo in the last 30 days. The property tax in 2017 was $6,803. The tax assessment in 2017 was $327,126, an increase of 2.0% over the previous year.

C


#9

Zillow owns Trulia. Redfin is independent


#10

A handy link to bookmark:

https://www.zillow.com/howto/DataCoverageZestimateAccuracyCA.htm

Thanks for reading,

LoansbyJW


#11

Wow, that’s shockingly bad.


#12

Yep. To paraphrase another, imagine sitting on a plane when the pilot comes on the overhead saying “well, thanks for flying with us today. Skies are clear. Wind is from the north. We expect to take off in about 5 minutes, and have a 94% chance of landing safely”

Zillow used to have stats that were within 12-15% of the market back in 2008-2010 so they have narrowed the gap somewhat. I advise everyone to stay away from two specific companies when looking at Real Estate - Zillow, because their data is shiatty (values and homes listed for sale), and CreditKarma - because the scores they burp out are useless.

Another link worth bookmarking BTW:

Thanks for reading,

LoansbyJW


#13

Zillow doesnt know how to evaluate interiors/condition of the hosue, that is prob one reason.


#14

Here’s a longish writeup at Quora:

How reliable are Redfin’s real estate value estimates?

He says 9 out of 10 buyers uses Redfin estimates, so it’s essential to make an offer before Redfin updates the house’s estimate:

Everything else about the property was great, so they wanted to write an offer.

I told them that because the Redfin estimate will probably increase over the next 72 hours, let’s try and submit an offer ASAP.


#15

Wow. That’s really …dumb… if people really do it. I wonder if some agents are taking advantage of naive buyers through this.