Profile picture for jramsay

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

  • Question refers to 2068 Genova Dr, Draper, UT 84020
  • February 11 2010
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    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.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

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.
  • February 11 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    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.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

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.
  • February 11 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    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.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.