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Answers (5)
- Mat Grzadzinski, "Mat G."
- Contributions:17
You can magically wipe out short sales and foreclosures from a computer program to make you feel better about your homes "value'......but unless you can magically make them disappear from your neighborhood, your home's "value" will absolutely be affected.
- sunnyview
- Contributions:25139
Short sales and REO's are the market in many areas. Even appraisers use them to determine value when you purchase. I understand your point about eBay, but whether it's houses or art it's worth what the public is willing to pay and if it is available for purchase for less than retail it is still a comp.
The market will turn around, but until then even distressed sales are comps right now since they comprise so much of the total market.
The market will turn around, but until then even distressed sales are comps right now since they comprise so much of the total market.
- Pasadenan
- Contributions:21466
For the modeling, all "distressed" sales are excluded from the calculations. They even run a check on the recently solds to the model after the calculations, and exclude more "recently sold" that don't fit the model well to avoid family transfers and similar.
For the individual estimates, the last sold price adjusted for last sold date is ONE of the variables used. And if it was a short sale, it likely will affect the calculations for that estimate. The last sold price adjusted for sold date is one of the few means Zillow has to determine quality, amenities, maintenance condition, views, construction style... from the public records data.
Read: Zillow's White Paper on the price difference of Foreclosures verses non-Foreclosures (PDF)
By the way, machine opinions of approximate value do not hurt people's lives; unless you intended to misuse those approximations to deceive and manipulate others.
There are plenty of other sources for Machine opinions of approximate value, so no one anymore is just going to accept one number as the final answer.
For the individual estimates, the last sold price adjusted for last sold date is ONE of the variables used. And if it was a short sale, it likely will affect the calculations for that estimate. The last sold price adjusted for sold date is one of the few means Zillow has to determine quality, amenities, maintenance condition, views, construction style... from the public records data.
Read: Zillow's White Paper on the price difference of Foreclosures verses non-Foreclosures (PDF)
By the way, machine opinions of approximate value do not hurt people's lives; unless you intended to misuse those approximations to deceive and manipulate others.
There are plenty of other sources for Machine opinions of approximate value, so no one anymore is just going to accept one number as the final answer.
- HomeSand.net, "White Picture"
- Contributions:4396
Zillow excluded all of the foreclosures (sheriff sales) at its best from the comps.
- wetdawgs
- Contributions:26841
If there are three identical houses in a block A, B & C. A & C sell for $100k as they are foreclosures or short sales. The owners are convinced the true market value is $200k. Who would be willing to pay $200 for home B?
If you bought a $1000 TV for $200, if lucky you can sell it for $220.
If you bought a $1000 TV for $200, if lucky you can sell it for $220.
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