Chicken/Egg Re: Pricing/Zestimates?

So, obviously there is a considerable amount of discussion about Zestimates here. Owners always seem to think they undervalue their homes, and anyone who looks at a few will find some that are overvalued. They are imperfect, however, so are all the other AVM's.

My real question is do any of you believe they have an effect on housing prices, regardless of their accuracy? Do owners see the various AVM's and price accordingly? Do the sellers that ignore the AVM's get lower offers from buyers with the published AVM's as part of their validation for less?

I know they are supposed to be a REFLECTION of housing prices, but have they become a factor in the ACTUAL selling price?

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December 30 2011 - Sapulpa
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Profile picture for hpvanc
Excellent question Quinton.Cindy. 

Can I expand it to ask if or how often buyers agents have to talk their clients down from making an overpriced offer based on information the client found on an AVM site, or how many times listing agents get offers that they know won't appraise on properties that have a high AVM value on some media site?  A little introspection and discussion on that side of the equation might help answer the question, whether Zestimates and other AVM's are leading the housing market rather than reporting it.

It seems like agents only focus on low AVM values.  You do occasionally see an owner/seller weigh in on the forums when they believe/know their Zestimate is too high.
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December 30 2011
Certainly, I didn't even realize how badly the question was slanted toward the low estimates, since that is all we seem to hear about here on the zillow forums. But, yes also how often is the resultant overvalue an issue. And I'm sure there are times a seller is wanting to go on the market way too high based on a zestimate or other AVM....

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December 30 2011
 
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Chicken/Egg Re: Pricing/Zestimates?
Profile picture for Cindy Quinton
Latest reply by Cindy Quinton
December 30 2011 | 2 answers
  • Posted by Cindy Quinton
  • In Pricing
  • December 30 2011
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