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Why the value of my home Zestimate value dropped -$148,500 in one month?

My home Zestmate value (477 Electric Ave, Riverside, CA 92507) dropped -$148,500 in one month (from $194,000 to $34,000)!!!  This is a completely renovated home and I spent over $100,000 to renovated.  Accodring to the tax assessors property tax, the land worth more than $80,000.  I do not know what Zillow did to come up with this number.  How to fix it?
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July 05 2011 - Hunter Industrial Park
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Answers (7)

Maybe it was never worth $194,000 to begin with?

Actually, the other answers are--of course--more likely. It's a Zillow glitch. Don't let it bother you.

By the way, the tax assessor's numbers are as bogus as Zillow's. What the tax assessment is has nothing to do with what your home (or land under your home) is worth.
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July 22 2011
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The new "zestimate" is RIDICULOUS.  My house dropped about $50,000 as soon as they made the change, and then with the updated "zestimate" 2 weeks later, it had dropped another $30,000 - $80,000 in a two-week period.  I don't know WHAT this is based on - a recent short sale in the area?  Okay, I'll take the initial drop although I don't agree with it, but why would the value drop another $30,000 just two weeks after the first change?  I live in an area without many sales (it's not densely-populated) and I am guessing that each sale will create a wild swing in the zestimate.  If you look at my trend chart, it's as would be expected, but then with a precipitous DROP all of a sudden.

Zestimates for another town also went down on June 13, but then at the next update 2 weeks later, they were up by about $35,000.  A sale of a very expensive luxury property had just been made.  Seriously, should one sale change the zestimate that dramatically?  I'm worried about people looking at my zestimate at the wrong week.  A house up the road was for sale with an asking price in line with the zestimate, and suddenly the asking price is $50,000 ABOVE the zestimate.  I feel like those people will have no chance with potential buyers seeing the depressed zestimate.
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July 22 2011
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My property also droped 50% in the course of the last month (Myers Park; Charlotte NC) zillows has done a horrible job.

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July 17 2011
My advise is to not use Zestimate and let all your clients know that while Zillow the site is a great place to look around to get ideas about what is available, Zestimates are inaccurate and can not be considered when pricing their home or submitting an offer on the property.
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July 15 2011
Monday - 7/5/11

As noted below by 'Tucson Spirit' (I really like that 'handle') ..... Zestimate is more of an 'rough estimator' rather than a specific gauge for home prices in your local, neighborhood, street and your home specifically.  Its a 'guestimate tool' at best ...... one that is driven by software that has a number of variable factors associated with it which are derived from RE sales around the country and your area / state.  If you would like a better estimate of what your property is worth, just contact a real estate agent or office in your town or county, and ask them for a no-obligation list of recent sales (comparisons) for your neighborhood.  Even recently sold 'comparables' do not always reflect the actual value of a property (based on its condition, up-dating, location, etc - it sounds like yours is fully renovated and will show nicely).  But local RE comparable may well be a better estimator of the current value of your home based on recent sales of like or similar properties in your neighborhood.

I know things like this can be discourageing ..... but as the reply below noted ..... your local area Realtors will not likely give much credit to the Zestimate estimate figure.  Just keep moving forward and list your property for what you think is fair and reasonable price as compared to similar properties sold in your neighborhood, etc.

I hope this assist you ...... best success.
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July 05 2011
Why?  Because Zillow recently changed how they calculate.  More importantly it was wrong before, and it is wrong now.  Zillow is more of a Guestimate than a "Zestimate" and their values are about as accurate as a 3 year old peeing in the wind (probably less so).  Keep this in mind, NO ONE in the real estate industry uses Zillow to establish value.  They are a for profit company attempting to have a "value" on every property in the US, so in reality how accurate do you really believe they can be?  They are not considered accurate or up to date. 

Best of luck.Spirit
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July 05 2011
There is a bug in the Zillow code programming, not from their Algorithm, hopefully it is fixed soon.
http://homesand.net/QuickComps.aspx?477+Electric+Ave+Riverside+CA&citystatezip=92507?Map=1?AllComps=True
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July 05 2011
 
Related Questions
Why the value of my home Zestimate value dropped -$148,500 in one month?
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July 22 2011 | 7 answers
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