Why such a price disparity?

I am a Realtor writing in my own behalf. My adjoining neighbor's patio home at 8400 NE 56th St 98662 sold two months ago for $210,000. Yet my more upgraded and improved home at 8402 NE 56th St 98662 has a current Zestimate of $190,000. We have almost identical floor plans and amenities. My home has had a remodeled bathroom done adding 20 sq ft, a much larger back deck and many upgrades my neighbor has not had done. Why the price disparity? Seems mine should be at $210,00 plus all things considered.
  • July 14 2009 - Van Mall
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Answers (5)

Profile picture for sharples8
The aility to add your own comps is interesting. However, it doesn't seem to work properly - I tried to use it the other day and, instead of averaging the comps into the total, Zillow added the value of the comp to the total, thereby doubling the Owner's Estimate (!)
  • December 21 2009
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Sam has really got the right info here- it isn't a perfect system and we don't know about upgrades, etc.  Obviously we have never been to your home. 

So what we have done in an effort to rectify this is opened the site up to let owners tell the public what they want about their home.  You can actually claim your home and create an 'Owner's Estimate" which will be published along side of our public record facts.  Then you are free to tell us about all of the upgrades and even pick different comps.  Here is a video you can watch if you would like to learn more about how to do this. 

Over million people have now edited something about their home!
  • August 24 2009
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I would agree with you that it doesn't work correctly a lot of the time.  I just don't beat my head against the wall worrying about it.  It's an imperfect model, and obviously one that we don't have 100% of the information about.

It could be as simple as Zillow placing the proximity of another house on your block with more weight on your house than your neighbor's.  Either way, it's just an estimate and not nearly as good as an appraisal.
  • August 18 2009
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TO SAM: Forget the upgrades and assume they are like for like homes. If the Zillow model is based on assessments, tax records and comparable sales and the home next door assessment, tax records are the same and it SOLD for $20,000 more than the Zestimate of mine, my question remains unexplained.
  • August 18 2009
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You've just said it yourself - upgrades and improvements.  Zillow doesn't calculate them because they aren't in the public records from the county.  The model is based on assessments, tax records, and comparable sales.
  • July 15 2009
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