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Was there a recent correction (day or so) to Minneapolis recently, or is there an algorithm error?

Seems home prices across the board dropped a significant percentage.
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June 14 2011 - Lynnhurst
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If property values drop, then the city will have to raise the mil levy. City government has fixed to rising costs due to a number of factors that (believe it or not) are out of the hands of our council members and mayor. So it's unlikely that taxes will drop even though home values in Minneapolis have taken a beating.

But it doesn't hurt to ask the city assessor to reevaluate your property value. Keep in mind three things; the period for contesting property values for 2012 has expired, even if they drop your property value today (which they won't because it's too late)  it won't affect your taxes until the following year and state law forbids the city assessor from using short sales and foreclosure sales when determining comps. FYI I helped a client to get several properties revalued for next year and while we didn't get as much as we wanted, the assessor assigned to our case worked incredibly hard to give us something. She was awesome.
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June 14 2011
Profile picture for fighting_sioux
Thanks for the insight Michael... I certainly believe our property values have fallen... but maybe not as much as Zillow has suggested.  I recently went through a refi with my primary home and the extensive appraisal came in about 10%, or 60K, above what Zillow is suggesting.  And that was on the low end of the assessment.  For our other properties... it's just more ammo to lower property tax values for next year without having to pay out of pocket expenses.  Maybe the readjustment will help matters?
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June 14 2011
Zestimates can really only be used as guideposts for determining value. There is nothing that can replace a paid appraisal as the appraiser will be able to consider all aspects of the property that Zillow was unable to include in their Zestimate.

If you are looking at outstate properties that may include multiple acres of land and the Zestimate doesn't include ANY land, then the Zestimate will be wrong. The Zestimate will always be reliant on the public information and often that information is wrong or is lacking crucial points that could cause a property value to go up - or down.

As to whether Zillow has become irrelevant with this change, Zillows algorithms have vastly improved over the last few years. Whether this most recent change is in the right direction remains to be seen. I think most of the alarm that's being expressed today is from homeowners who may not have been aware that home values have fallen drastically in some parts of the country. Or they knew it, but are unwilling to accept that THEIR home has been adversely affected as well.
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June 14 2011
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Thanks...  so Zillow did this in hopes of improving accuracy I see.  I guess time will tell.  Two homes recently sold in my 'hood.  One at 1.05M.  Zillow shows the estimate at 915K.   One of my properties on Kings Highway went from 345K to 279K overnight.  I'm wondering if the change just further made Zillow irrelevant?
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June 14 2011
I randomly went through some sales that closed today on MLS. I selected a range of sold prices and a range of home locations across our local MLS system (which stretches quite a ways across Minnesota.

Here's the statistics that I found. None of these were short sale or foreclosures and all were updated today on Zillow. Seller contributions were deducted from the gross sale price to determine a true net price. For privacy, I have provided only a portion of their addresses.

31XX 43d Ave S Minneapolis - Closed @ $199,700  Zillow Zestimate @ $193,400

1XX Timber Circle  Buffalo       Closed @ $220,000  Zillow Zestimate @ $222,500

15XX Boardwalk Ct. Mendota Hts   Closed @ $577,500  Zillow Zestimate @ $455,300

1XX  Foxwood Cir   Mankato       Closed @ $589,000  Zillow Zestimate @ $161,700*

25xx Oregon Ave S, St. Louis Pk  Closed @ $140,600  Zillow Zestimate @ $167,500

14XX 3rd Street N  Cold Spring   Closed @ $261,000  Zillow Zestimate @ $232,000

As you can see, the greatest price discrepancy was in the most expensive property and the least discrepancy comes in towards the average sale price of homes in Minnesota. While the evidence is anecdotal, it gives a snapshot of how accurate (or inaccurate) Zillow Zestimates are in our market.

* This listing on Zillow only showed number of bedrooms and baths and seemed incomplete as compared to other Zestimates. This lack of hard data would probably account for the wide ranging discrepancy between sold value and Zillow value.
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June 14 2011
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Yes, there was a recent correction yesterday evening across the board. Please read this Zillow FAQ.
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June 14 2011
 
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Was there a recent correction (day or so) to Minneapolis recently, or is there an algorithm error?
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Latest answer by Michael Emery
June 14 2011 | 6 answers
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