Profile picture for EdwardJ.Fern

How do you calculate the value of a home?

My home at 25662 Po, Mission Viejo, CA, has 2,600 sq. ft. and is posted with a value of $516,900.  My next door neighbor has the same lot size, a similar swimming pool, and only 2,290 sq. ft. but is listed with a $536,300 value.  Something is very wrong with your methodology.
  • November 10 2011 - Mission Viejo
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Answers (5)

Profile picture for wetdawgs
I've never seen an agent or appraiser who is willing to share their statistics of their numbers, so do they meet the stringent criterion of 2% error rate?  Certainly I've not seen such precision in the houses we've bought and sold, in fact, in the last two transactions the Zestimate was closer to actual sales price than the CMAs and appraisals.  

I would be delighted to see both appraisers and agents be accountable and offer the transparency in their numbers.  
  • November 10 2011
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Zillow uses the purchase price and the tax assessment as ones in many facts to calculate the home values, the '25664 Po' has higher purchase price ($336K VS $229K) and the tax assessment ($403K VS $348K), therefore your Zestimate is a bit off compare to the '25664 Po'.
  • November 10 2011
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Profile picture for sunnyview
I partially agree with that, but I see Zestimates a bit differently. If your Zestimate is high it is like someone in the supermarket telling you that your baby is cute and should be a model. On the other hand, a low Zestimate is like a stranger telling you that you have a funky baby that reminds them of their unemployed cousin.

Both are completely subjective and pretty worthless when you get down to it--definitely not a marketable opinion. Anyone who flies to NY to sign their baby up with an agent based on a strangers opinion is wasting their money the same as anyone who submits an offer or pays for a refi based on a Zesitmate alone is probably wasting their time.
  • November 10 2011
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Profile picture for sunnyview
The main difference I see in that analogy is that you have to pay a dentist or a surgeon. Zillow is free so you get what you pay for. I would definitely feel differently if it was my appraiser or agent who had an admitted error rate of 8.5%. I might feel better they admitted it, but would wonder what I was paying for.
  • November 10 2011
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There are many reasons why the value of your neighbor's home may differ from your own. 

The easiest answer is that he may have taken the time to update facts about his property on Zillow. Zillow relys on homeowners and agents for updated and detailed information.

For a more accurate Zestimate, you will need to claim your home and update the facts. Try to provide as much information as possible (adding a picture won't hurt either).

Click on this link for information about claiming your home
http://www.zillow.com/wikipages/Claim-Your-Home/

Then click on this link for information about editing the facts
Edit Your Home Facts

Hope this helps!
  • November 10 2011
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