Profile picture for mercedes greenberg

Drastic change on price

I frequently check the price of my home located at 133 Lancaster rd Boynton beach FL and to my surprise I saw the valued price of my home went down by almost 60k according to you for no reason at all. Also, the price is listed in red. I know this is not right. Please give me an explanation.
  • December 03 2013 - Boynton Beach
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Answers (6)

Profile picture for Beth Traverso
It's just a Zestimate and most people by now know that it is not a "Zappraisal". I wouldn't put too much into it. If the home stats are wrong on Zillow you can claim the home and edit them, which may in turn change the Zestimate.
  • December 19 2013
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Profile picture for mgoodman6
A home valuation is Zillow's estimated market value, computed using a proprietary formula. It is not an appraisal. It is a starting point in determining a home's value. The Zestimate is calculated from public and user submitted data. Market conditions change with foreclosures, short sales, and time of year.
  • December 03 2013
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Profile picture for blue screen exile
1) An "estimate" is not a "price".

2) The 30 day change is only an "estimate", it is not calculated from any of the estimates.

3) New estimates are posted nominally 3 times per week, but only an average is shown for each month in the trend chart.

4) the "sold price" indicated on the home details page is $313.2k on 12/21/05.  That was near the peak of the housing bubble for that area, which occurred due to NAR lobbing HUD and Congress for relaxed lending standards to get more people into "home ownership", thus nothing down loans with no income qualifications were being given to anyone wanting to buy, thus driving up housing prices.

5) Values in that area have started rising again, and that is what the trend is showing for the home mentioned as well.  A little over 1% annual increase.

6) It is not just a "formula"; it is a lot more complicated than that; it is a non-linear learning model with multiple variables.  For more information, see the FAQ: "what is a Zestimate"

7) The modeling excludes Foreclosures and other distressed homes from the "recently sold" used in the calculations, so it had absolutely NOTHING to do with "one" recent foreclosure in the area.  Besides, Zillow uses all non-distressed recently sold homes of the same type (single family, condo, townhouse...) in the county, weighted by distance for the estimates, not just 3 cherry picked ones that a Realtor might choose.

Yes, the present estimated range (70% confidence interval, meaning a 15% chance that present market value is below that range, and 15% chance that present market value is above that range) posted on 11/28/13 is $186k to $210k, which is $103.2k below purchased price, but that difference was due to artificially high prices due to "free money" and Realtor marketing propaganda.

I don't see a $60k drop presently, but then I didn't look at the 11/24/13 estimate, and that estimate is now "gone".  Zillow doesn't save the past estimates.  If you don't save it, there is no record.

As far as numbers in red?  The estimates are always shown in red on the home details Zestimate table.  But the only numbers that show in red on the map are newly listed or listing changes that match your saved search criterion.  And then it is not really red numbers, but white numbers in a red bubble.

  • December 03 2013
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It could be that there was a recent foreclosure or short sale in your neighborhood that changed the values of all of the homes around you. Check through your home's information and put in any upgrades or updates that you have and correct anything that is not accurate so that you can get a better "Zestimate"...Also I have noticed that Zestimates are usually a bit lower than most would expect./
  • December 03 2013
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It is also possible that for some reason your Zestimate was artificially high and it had a big adjustment....
  • December 03 2013
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I am not a Zillow employee or an expert on Zillow by any means. I do know however that their Zestimates are generated using algorithms based on sales in your area. The numbers are calculated using a formula. If you want an accurate value the best way would be to hire an appraiser to properly value the home. I can refer someone who will do one for a homeowner for around $250. Zillow is a great resource but there are only computer generated calculations behind your Zestimate. Likely there was a recent sale in the area that dramatically reduced the "averages" and brought your value down, hence the price listed in red.  If that number is accurate it will stand the test of time. However if it is artificially low all you have to do is give it time and as new properties sell and time passes you will see the values go back up. Fear not, the South Florida market is still strong. Things generally slow down over the holidays but they will pick up and a drop like that is not likely realistic in this market. An objective buyer will understand that. When we write offers on homes we don't look at Zestimates to help us determine a price. We look at past sales and trends. I hope this helps...
  • December 03 2013
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