Profile picture for user34330931

Why are Zestimates so much lower than the actual value of the houses listed?

  • May 29 2014 - Columbus
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Answers (3)

Profile picture for BrokerAppraiser
Any evaluation on line or done without personally inspecting a home and comps is likely to be inaccurate, such is the case with Zestimates. Not only are these things inaccurate from a physical standpoint, they don't consider the motivations of buyer and seller, concessions, or any of the other factors in a sale.

And what do you mean by "actual value" - list prices or final sale prices? There's a big difference
  • June 04 2014
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There are several issues with Zestimates. In short, Zillow uses public information from various sources including property tax assessments and recently sold homes close to target. In some mathematical black box type of algorithm they calculate a Zestimate. The Zestimate doesn't not take home condition, updates, location items (golf front, waterfront, cul-de-sac lot, etc.) into account. Area sold homes could be shanties two blocks away and target home could be all-brick, with modern appliances in a gated enclave and Zestimate doesn't care. Zestimate has been the bane of many a REALTOR's life - most folks are quick to understand the shortcomings and others swear they are the absolute price as given by the Almighty.
  • May 29 2014
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Profile picture for Outer Banks N C
Why on Earth would you think a computer generated wild guess would be anything but inaccurate? They are a guess and I have no idea why Zillow even fools with estimates, we all ignore them because they are a joke.
  • May 29 2014
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