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Answers (8)
- Greg Magnus, "AMGmarket"
- Contributions:9
The zillow.com estimate is worth what you pay for it; nothing.
- Vicki Long, "Vicki Long"
- Contributions:3
Dear Ron,
One of the facts that Zillow uses in Zestimates is the last sales price of the property. Have you owned the units since you built them? If so, then Zillow has no actual sales price for that property from which to get a more accurate Zestimate.
Zillow uses and algorithm to make an AVM or Automated Valuation Model . The information that goes into the algorithm is constantly changing. Sales price, other local sales, tax valuation, age of property, and the limited amount of data the can be accessed from the taxes are just some of the data considered. The recent flood of the market with short sales and distressed sellers is affecting the algorithm, i.e. the Zestimate. Also, Zillow has no way to know the views and/or building condition. It is simply done by a computer that does not actually visit each property. That is why it is meant to be one of many points of reference.
If having an accurate valuation is important to you, I would recommend that I do a Comparable Market Analysis which is done by a human analysis of the actual property.
Thank you,
Vicki Long
vicki.long@nwhomes.net
One of the facts that Zillow uses in Zestimates is the last sales price of the property. Have you owned the units since you built them? If so, then Zillow has no actual sales price for that property from which to get a more accurate Zestimate.
Zillow uses and algorithm to make an AVM or Automated Valuation Model . The information that goes into the algorithm is constantly changing. Sales price, other local sales, tax valuation, age of property, and the limited amount of data the can be accessed from the taxes are just some of the data considered. The recent flood of the market with short sales and distressed sellers is affecting the algorithm, i.e. the Zestimate. Also, Zillow has no way to know the views and/or building condition. It is simply done by a computer that does not actually visit each property. That is why it is meant to be one of many points of reference.
If having an accurate valuation is important to you, I would recommend that I do a Comparable Market Analysis which is done by a human analysis of the actual property.
Thank you,
Vicki Long
vicki.long@nwhomes.net
- crpaulk
- Contributions:11
Stan,
I didn't change the square footage, I corrected it. I designed and built 2011, 2013, 2015, & 2017 they are all 2000 square feet and were designed, permitted and build that size. I am surprised that you don't consider garage size in value as it obviously cost more to build a bigger garage and in my experience a larger garage is worth more to the buyer. It seems Zillow would want to have the most accurate information to add real value to the site as all of the value of Zillow is data. If the data is flawed then the value of Zillow is diminished.
Thank You
Ron
www.paulkhomes.com
I didn't change the square footage, I corrected it. I designed and built 2011, 2013, 2015, & 2017 they are all 2000 square feet and were designed, permitted and build that size. I am surprised that you don't consider garage size in value as it obviously cost more to build a bigger garage and in my experience a larger garage is worth more to the buyer. It seems Zillow would want to have the most accurate information to add real value to the site as all of the value of Zillow is data. If the data is flawed then the value of Zillow is diminished.
Thank You
Ron
www.paulkhomes.com
- Stan Humphries, "Stan Humphries"
- Contributions:50
Hi crpaulk. Looks like you changed the square footage for 2013 H Ave on 9/29/09 and the square footage for 2011 H Ave on 1/28/10. In both cases, the square footage changed from 1,023 to 2,000, a large change that is pushing up the Zestimate on both homes.
However, because you changed 2013 four months before 2011, the former has moved up more than the latter (because it started increasing sooner). Both are still moving up though and I would expect both to reach approximately the same level, with perhaps with 2011 being higher since it has a higher tax assessment. I don't believe we currently consider garage spaces in our local models in that area.
Hope this helps explain what's happening.
However, because you changed 2013 four months before 2011, the former has moved up more than the latter (because it started increasing sooner). Both are still moving up though and I would expect both to reach approximately the same level, with perhaps with 2011 being higher since it has a higher tax assessment. I don't believe we currently consider garage spaces in our local models in that area.
Hope this helps explain what's happening.
- crpaulk
- Contributions:11
I must be speaking another language here. The two responses are non-responces to the question. To recap: 2011 & 2013 are attached town homes, both built at the same time, buy the same builder. at the same speck level, the same square footage, etc.. How can identical homes side by side have a 69,000 dollar price difference? Now add in the lower Zillow priced unit has a larger garage by x2 and more windows as it is an end unit. How can Zillow be a reference when it misses by over 20% in just base price, then add in the end unit cost 30K more to build. Zillow is a useless tool if the errors are this high. The biggest problem is there is no way to contact them to "Help" improve data. The answers Zillow provide are as helpful as the answers to these questions "How much does a vacation cost" or "How much does a car cost." Zillow hurts the real estate market buyer and seller. Hopefully someone will build a good online real estate tool and Zillow will sign off for good.
- Tonya Brobeck, "Tonya Brobeck"
- Contributions:637
Zillow should be used as a resource, a free resource at that. Most of the information regarding property is solely from tax records, which an assessor rarely if ever goes into a home to note extra features, upgrades, etc. Occasionally views will be listed on the tax records, but not always. Zillow simply gives a general idea, just like the tax records do. As an agent, when I produce a CMA (market analysis on your home) they are usually close, although some are way off from tax records too. The closest in value an agent can get is of course best for the home owner who is considering selling. CMA's are usually a free service from local agents too.
- crpaulk
- Contributions:11
Wetdawgs,
That may be the case, but these units are identical except that the lower priced unit has upgrades and a larger garage, yet it is priced $69K lower. I think this goes way beyond views and upgrades. Note these are attached town homes. The base price should be the same regardless. Not to mention the higher "Zillow" priced unit is also below market value. Zillow has no basis in fact.
That may be the case, but these units are identical except that the lower priced unit has upgrades and a larger garage, yet it is priced $69K lower. I think this goes way beyond views and upgrades. Note these are attached town homes. The base price should be the same regardless. Not to mention the higher "Zillow" priced unit is also below market value. Zillow has no basis in fact.
- wetdawgs
- Contributions:26768
A Zestimate never substitutes for an appraisal and is a starting point only for comparison of properties. The Zestimate is not taking into account views, upgrades and other features that do contribute to value.
Those who use the Zestimate as intended find it a very useful tool.
Those who use the Zestimate as intended find it a very useful tool.
Why is the Zestimate so inaccurate?
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