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Replies (12)
- sunnyview
- Contributions:25139
Zillow works from numbers only so there is a lot they cannot see. Many foreclosure houses had higher bubble sales prices that those never sold during the bubble. When those houses sell again for foreclosure prices, their Zestimate will fall more than neighboring houses.
- Bob Brandt, "BobBrandtRealtor"
- Contributions:1019
I have seen a few times where the zestimate is about right. Otherwise it is high or low. Good to also collect estimates from other sources and use the zestimate as just one piece of the puzzle.
- Sharon Lewis, "Sharon Lewis"
- Contributions:3923
- Wes Black
- Contributions:509
Think of zestimate as a range, not a fixed value.
I wonder how Zillow come up with these numbers.
This is how zillow explain it
How do we come up with the Zestimate?
We compute this figure by taking zillions of data points - much of this data is public - and entering them into a formula. This formula is built using what our statisticians call "a proprietary algorithm" - big words for "secret formula." Currently, we have data, Zestimates and Rent Zestimates on approximately 100 million homes on Zillow.
What's in this formula?
One eye of newt ... Actually, it's less wizardry than mathematics. When our statisticians developed the model to determine home values, they explored how homes in certain areas were similar (i.e., number of bedrooms and baths, and a myriad of other details) and then looked at the relationships between actual sale prices and those home details. These relationships form a pattern, and they used that pattern to develop a model to estimate a market value for a home.
In other words they make the numbers up
This is how zillow explain it
How do we come up with the Zestimate?
We compute this figure by taking zillions of data points - much of this data is public - and entering them into a formula. This formula is built using what our statisticians call "a proprietary algorithm" - big words for "secret formula." Currently, we have data, Zestimates and Rent Zestimates on approximately 100 million homes on Zillow.
What's in this formula?
One eye of newt ... Actually, it's less wizardry than mathematics. When our statisticians developed the model to determine home values, they explored how homes in certain areas were similar (i.e., number of bedrooms and baths, and a myriad of other details) and then looked at the relationships between actual sale prices and those home details. These relationships form a pattern, and they used that pattern to develop a model to estimate a market value for a home.
In other words they make the numbers up
- Nina Harris, "NinaHarris"
- Contributions:258
In quite a few cases Zestimate is way off.
- sjdxo
- Contributions:4
Really what they should do is just get rid of the exact number "Zestimate" aproach all together.
the exact number is hardly ever correct and it a frustrating thing to many buyers and even more sellers.
Zillow has potential to be a great site for buyers to try to get informed. If Zillow went with just showing value RANGES and not any exact number of a guess (I mean Zestimate) it would probably clear up a lot of the complaints about their service.
the exact number is hardly ever correct and it a frustrating thing to many buyers and even more sellers.
Zillow has potential to be a great site for buyers to try to get informed. If Zillow went with just showing value RANGES and not any exact number of a guess (I mean Zestimate) it would probably clear up a lot of the complaints about their service.
- Jennifer Slider, "JenniferSlider"
- Contributions:2
The Zestimate, the word itself does imply it is an estimate and not an exact value. The figure is more accurate in homogenous neighborhoods; houses uniform in structure. If you are looking at a property in a neighborhood with varying styles, sizes and ages of homes, the figure is less accurate. It is best to contact a Realtor who is famiar with the nuances of the area the house is located in. As Realtors, we do this every day and typically know average square foot prices in our local market place.
- CORONA NICK
- Contributions:2218
Sometimes reliable... they can be too high sometimes...
- Barbie Oehlschlager, "Barbie Oehlschlager"
- Contributions:37
Scroll down to the bottom of this web page and click on "About Zestimates." You'll be taken to all the information Zillow makes available about the accuracy of the Zestimate.
It's interesting (and not in a good way) that in every market area less than 50% of the Zestimates are within 5% of the final sales price. As a kid, if you brought home a math assginment with a score of below 50% that's an F.
In Atlanta, Detroit, Dallas/Ft.Worth, Miami/Ft.Lauderdale, Orlando, Pheonix, Pittsburgh, St. Louis, and Tampa it's even more appalling with less than 1/3 of the Zestimates being accurate within 5%.
At the starter home level this might not be a huge problem, but scale up and 5% on a $300,000 home is $15,000 ... OR ... 5% on a $750,000 home is $37,500.
Who's up for a game of darts?
It's interesting (and not in a good way) that in every market area less than 50% of the Zestimates are within 5% of the final sales price. As a kid, if you brought home a math assginment with a score of below 50% that's an F.
In Atlanta, Detroit, Dallas/Ft.Worth, Miami/Ft.Lauderdale, Orlando, Pheonix, Pittsburgh, St. Louis, and Tampa it's even more appalling with less than 1/3 of the Zestimates being accurate within 5%.
At the starter home level this might not be a huge problem, but scale up and 5% on a $300,000 home is $15,000 ... OR ... 5% on a $750,000 home is $37,500.
Who's up for a game of darts?
- Steve Withrow, "SteveMDDCVA"
- Contributions:22
I've found them more accurate in condo or townhome complexes where a pure square footage analysis is more effective. When you're dealing with detached homes in more eclectic neighborhoods it falls off really quickly. I often look at Zestimates when I'm done doing a CMA for a client just out of interest, and I would say they're in the ballpark maybe 35% of the time.
Zillow Estimate Reliable??
I would find a house NOT on foreclosure on the same street, with larger lot size and same number of bedrooms. The Zestimate is lower than those on the same street that are on FORECLOSURE. I wonder how Zillow come up with these numbers.
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