Profile picture for user389903

How is my home worth nearly $100k more than my neighbors?

On Zillow.com my home is worth nearly $100,000 more than my neighbors with the same floor plan.  How does that happen?  Not that I'm complaining, I'm just curious as to how the algorithm works, and want a realistic estimate of what the condo is worth now.  Thank you!
  • July 20 2012 - Santa Teresa
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Answers (6)

Profile picture for wetdawgs
@SamKumarsamy:

Is it possible that the price you paid in July is now being used in the Zestimate?  Zillow calculates the Zestimate for each home individually, and the sale price/tax assessment are important parts of their formula.

Zillow doesn't know about your upgrades.  Thank goodness they don't have a video cam spying inside each of our homes!   "What is a Zestimate?" is useful reading to understand what contributes and what doesn't.

  • August 29 2012
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Profile picture for SamKumarsamy
I have the same question too, I  purchased a REO home in Santa Teresa this July and the value was going up along with my neighbors until 4 weeks ago when I noticed that mine started going down while all my neighors continue to go up. Mine is the same floor plan as the neighbors and I have upgrades done  too in the past month.  I really question Zillows pricing model !!!

  • August 29 2012
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Hello!

I would suggest getting at least one, if not three, CMA's from local Realtors in your area.  Get suggestions from friends on who they have used in the past & contact those people.  Ask about their credentials & their experience.  You'll likely find the CMA's will be similar, but not exactly the same.  The average of the three is probably a very real "market" value of your home.  Most likely, there will be no cost for getting the CMA's & you'll find a fantastic Realtor in the meantime.

Good luck!
  • August 02 2012
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Profile picture for aracz
While there may be differences in value using an automatic algorithm, often, the most accurate way to establish pricing would be to use the Comparable sales method in many cases, by finding comparable sales in the same area. The closer the comparable, the more relevant it's price.

Then we look at the average dollar per square footage living area to have a good idea of the comparables market as adjusted to your square footage, then we factor in upgrades, and we also look at how long it took to sell other properties on the market in the area (Days on Market).

We also look at properties that did not sell, to see what the price was that did not generate a sale. In this way, we have a more scientific way of approaching the pricing question.

After this method, when a certain price is chosen, it is then substantiated by market data (comparables).

Please let me know your thoughts, and if you have any questions on the pricing.

All the best,

Arpad
  • August 02 2012
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Profile picture for user389903
Thanks, I'll give that a try, as mine has gone up even more, but my neighbors still hasn't at all!  Strange.
  • July 30 2012
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Profile picture for Ofe Polack
If you are a frequent participant on the blog you will notice that many readers discuss the discrepancy of the Zillow pricing.  If you need more accurate information search on one of the assessor's search engines or contact the assessor's office and ask for the assessed value of both. It is better when you can read the full description to establish the similarities or differences.
  • July 20 2012
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