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Why is my zestimate so wrong?

We bought our house brand new in February 2012 for $225,000. Our current zestimate is $146,661. They are still building on our street, and have our SAME EXACT floor plan for sale for $240,000 with a zestimate of $242,287. We have tons of upgrades in our house that this house doesn't have and our lot is bigger. What is going on with our zestimate??
  • December 08 2012 - Saint Augustine
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Answers (2)

Profile picture for user03952898
Rachel: You aren't the only one.  For people considering a sale a zestimate that is very wrong is very detrimental.
  • January 14 2013
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Zestimates can be wrong.  The Zestimate platform was designed by technicians who understand information gathering and computer code -- but not necessarily real estate.  The Zestimate is more of an average that pulls in values or recent sales of surrounding properties -- but that can mean it might be comparing a lot sale, to a condo sale, to a home sale.  The system compares properties next to each other -- but not necessarily like properties.  It also does not take into account whether one is a bank foreclosure sale that was priced low to sell quickly -- vs. one such as yours that is cared for, has been maintained, is new, has many upgrades, etc., etc.  Now, that being said, you don't always get the value back in all of the upgrades -- kind of like driving a new car off the lot and it drops in value.  that beautiful screened inground pool that someone spent $60,000 on -- an appraiser may only give a value of $30,000 or maybe even less.  So, don't sweat the Zestimate and be happy in your new home -- comparing to the ones that are selling.  Also, feel free to visit my website and check the Market Watch button for a quick reference of values in your neighborhood -- or I can set you up for a weekly or monthly report that is a little more specific.  If you ever need assistance from a realtor, please feel free to contact me. Karen Peil, Broker-Associate, Prudential Network Realty,  [contact information deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]
  • December 09 2012
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