- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Answers (2)
- Amy Mullen, "amyullenremax"
- Contributions:173
NCarraway,
I can't speak to how Zillow calculates their Zestimates - only that they don't necessarily reflect market values.
Yes - short sales and foreclosures in a close proximity will affect your current market value perception. I am familiar with your area and it's not uncommon for people to make a move over the state line. If you are on the market now and there is a comp house just over the state line that is priced lower because it's a short sale - then it's going to affect you.
Amy
I can't speak to how Zillow calculates their Zestimates - only that they don't necessarily reflect market values.
Yes - short sales and foreclosures in a close proximity will affect your current market value perception. I am familiar with your area and it's not uncommon for people to make a move over the state line. If you are on the market now and there is a comp house just over the state line that is priced lower because it's a short sale - then it's going to affect you.
Amy
- Pasadenan
- Contributions:21450
No, absolutely not, unless the short sales already affected the sale price of homes in your county at least 2 months prior.
First, the modeling is done by county, thus anything in a different county is not included in the economic model.
Second, Zillow specifically excludes all Foreclosures, REO's, Short Sales and other distressed sales as well as family transfers in the modeling. If it is clear it is a Foreclosure, REO, or short sale to begin with from the public records, it is excluded right from the start in the "recent sales" modeling. And each of the recent sales is tested against the model, and removed from the modeling if the sold price is substantially different than the model implies, thus removing most other "special case" transactions.
Read the Zillow Research blog and the related white-paper on the issue:
Price Difference Between Foreclosures and non-foreclosures.
By the way, Zillow has never used a "comparable" method for their modeling. It is not a "CMA" no matter what any agent may tell you. And the "see similar sales" is produced after the estimates are derived, not vice-versa.
First, the modeling is done by county, thus anything in a different county is not included in the economic model.
Second, Zillow specifically excludes all Foreclosures, REO's, Short Sales and other distressed sales as well as family transfers in the modeling. If it is clear it is a Foreclosure, REO, or short sale to begin with from the public records, it is excluded right from the start in the "recent sales" modeling. And each of the recent sales is tested against the model, and removed from the modeling if the sold price is substantially different than the model implies, thus removing most other "special case" transactions.
Read the Zillow Research blog and the related white-paper on the issue:
Price Difference Between Foreclosures and non-foreclosures.
By the way, Zillow has never used a "comparable" method for their modeling. It is not a "CMA" no matter what any agent may tell you. And the "see similar sales" is produced after the estimates are derived, not vice-versa.
Can a Zestimate be affected by short sales and sales from surrounding states?
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.