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Answers (3)
- Pasadenan
- Contributions:21458
The two variables used in the modeling that try to capture maintenance condition and amenities/quality/extras/views... are:
Last sold price adjusted for last sold date
and
Tax assessed value adjusted for local tax rules.
Distressed sales are excluded from the modeling; so if a property is listed as a foreclosure, the actual market values tend to be 10% to 30% below the estimates.
Zillow Research Brief on Foreclosures
On the other hand, if the property recently went through an REO sale, that sale will drive the estimates down to reflect the condition. Which will mean that even after renovation, the estimates will be low.
If anyone can find a way to extract renovations and deferred maintenance from the county records; there are many of us that would love to know. Reassessments alone are not sufficient.
Last sold price adjusted for last sold date
and
Tax assessed value adjusted for local tax rules.
Distressed sales are excluded from the modeling; so if a property is listed as a foreclosure, the actual market values tend to be 10% to 30% below the estimates.
Zillow Research Brief on Foreclosures
On the other hand, if the property recently went through an REO sale, that sale will drive the estimates down to reflect the condition. Which will mean that even after renovation, the estimates will be low.
If anyone can find a way to extract renovations and deferred maintenance from the county records; there are many of us that would love to know. Reassessments alone are not sufficient.
- wetdawgs
- Contributions:26826
Zestimates assume standard condition, hence the reason Zillow emphasizes that Zestimates are a starting place for comparison of properties not a CMA or appraisal.
- Phil Zimbardi, "TOP END Properties"
- Contributions:209
For the most part it can't. The Zestimate on the home profile is a range of values and you can use that to manually figure out a possible Zestimate. The specific number zestimate that you see if generally the price if the property is in similar condition to the other homes in the area.
How does Zillow differentiate between a foreclosed wreck and a completely renovated home.
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