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Answers (4)
- Vince Curtis, "SoCal Appraiser"
- Contributions:4699
REO's are not used in the Zillow estimate modeling. It should have no affect of any kind. They use a 2 step process to try to make sure all REO's, other "distressed sales" and family transfers are excluded from the modeling. If there are no "normal" sales in an area, it still could have an affect.
I know thats what Zillow does, but take into consideration that short sales and REO arent always 'not normal' sales.
I just completed an appraisal on a property where the appraised value was in line with the depreciation calculated by the ZHI (Zillow Home Index) from where they bought it, and all sales used in the appraisal were short sales and/or REO sales (as they were in the tract) . All sales (except one) were in line with the market value, and I dont think if there was a 'standard' sale used it would have been any higher.
Granted most of the time 'short sales' are lower than the norm, mostly because of the hassle of working with a seller and their bank, but not always. . . .
I know thats what Zillow does, but take into consideration that short sales and REO arent always 'not normal' sales.
I just completed an appraisal on a property where the appraised value was in line with the depreciation calculated by the ZHI (Zillow Home Index) from where they bought it, and all sales used in the appraisal were short sales and/or REO sales (as they were in the tract) . All sales (except one) were in line with the market value, and I dont think if there was a 'standard' sale used it would have been any higher.
Granted most of the time 'short sales' are lower than the norm, mostly because of the hassle of working with a seller and their bank, but not always. . . .
- Christine Moran Realtor & Notary, "Christine Moran"
- Contributions:288
In Springfield the forclosure hit big and property values were definately impacted. You have to comp a bank owned with other comparables.
- Pasadenan
- Contributions:21458
REO's are not used in the Zillow estimate modeling. It should have no affect of any kind. They use a 2 step process to try to make sure all REO's, other "distressed sales" and family transfers are excluded from the modeling.
If there are no "normal" sales in an area, it still could have an affect.
Also, they don't model to listing price, they model to "sold" price, unless it is one of the few "non-disclosure" states, where the listing price is the best they can get to model to.
If there are no "normal" sales in an area, it still could have an affect.
Also, they don't model to listing price, they model to "sold" price, unless it is one of the few "non-disclosure" states, where the listing price is the best they can get to model to.
- Dave Matthews, "Dave Matthews"
- Contributions:14
Zestimates are based on sales in the entire town or geographic area. One very low price sale will not have a huge effect on the Zestimate. If there are many low price sales, the Zestimate will move to a greater extent.
How much does a bank-owned property listing for very low price bring down zestimate, in and of itse?
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