Profile picture for jramsay

Why is zestimate still 30% higher than an old (5 month) asking price?

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 11 2010
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (2)

You should also keep in mind that AVM's have no way to tell a properties condition.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 11 2010
The zestimate is an automated valuation model or AVM and models like these look back at what has happened in the market and realy are not able to account for recent changes in the property as well as account for changes in the market going forward. They don't account for daily changes in interest rates or how much inventory is available in your neighborhood. If there are many properties in your neighborhood/area for sale it will put pressure on prices to decline.  Buyers are concerned with the cost of a property and the cost to them is the monthly payment. If interest rates go up by 1% they would have to mortgage 10% less to keep the same payment. What happens in this case is that they will only pay 10% less, so if you are trying to sell, SELL Today. Economists believe that once the tax credit ends in April and the Government ceases to buy mortgaged back securities, rates will probably rise and buyers will fall from the market. It is this kind of information that the Zestimate can't account for.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 11 2010
 
Related Questions
What's my neighborhood name
How can I get wrong information corrected?
Profile picture for John Reeves
Latest answer by John Reeves
8 hours ago | 1 answers
is anyone staying in the home
My realtor is dead on the floor, and the house is on fire
Latest answer by Pasadenan
11 hours ago | 3 answers
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.