Profile picture for user6584002

Zillow's zestimates are adversely effecting the housing market in Michigan.

While most of the nation's housing market is recovering, Zillow's zestimates continue to greatly under value homes in Michigan. Zillow's zestimate is $20% less than what the market value was for my home in 2000. The  zestimate does not consider that my house is on an all-sport private lake and has beautiful upgrades.  The only offer that we received was $150,000 lower than what we paid in 2000, because they referred Zillow for systematically depressing the housing market in Michigan.
  • June 09 2013 - Herndon
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Answers (2)

Profile picture for Outer Banks N C
Estimation is the process of finding an estimate, or approximation, which is a value that is usable for some purpose even if input data may be incomplete, uncertain, or unstable. The value is nonetheless usable because it is derived from the best information available.[
  • June 09 2013
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Profile picture for SoCal Engr
"The only offer that we received was $150,000 lower than what we paid in 2000, because they referred Zillow for systematically depressing the housing market in Michigan."

Zestimates are simply estimates, and Zillow itself indicates that there is an error margin that can be >25%. If you are selling, either with a REA or as FSBO, you should be prepared to defend your asking price.

Ways to defend your asking price include...
-- Have a current (within last 6 months) appraisal of value.
-- Have a CMA, with at least 3 comparables (preferably within 3 months, but no-older-than 6 months).

Any buyer/offer that uses Zestimates as the basis of value should be easily countered if you have either of the two (appraisal or CMA). Just remember that both (appraisals and CMAs) are also estimates-of-value, though they should be more locally aware/sensitive than Zestimates - and they can take in specifics that Zestimates do not.
  • June 09 2013
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