how do you sometimes get totally eroneous sale prices

I did a search for comps in San Rafael, CA for a home on Devon Drive.  Almost all the comps were in a very similar price range, except two, each of which was about $1 million higher than the rest.  I double checked them on the MLS and they were off by $960,000 and $1.1 million.  My question is whether those two errors effected the Zestimate on other homes in the area?
  • October 06 2009 - San Rafael
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Answers (3)

No, they are not factored in. Read this...

http://www.zillow.com/wikipages/What-is-a-Zestimate/

Zillow doubles checks their Zestimates against home Zestimates that have recently sold to see how much they are off. Here is their accuracy.

http://www.zillow.com/howto/DataCoverageZestimateAccuracy.htm

Take their estimates with a grain of salt though - its only a educated guess.

  • September 16 2010
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When a Realtor or Broker does the comparables in the neighborhood they take into consideration houses that are similar that sold within the last 3 months.  You adjust up or down based on what that particular house has that's different than the comparable, as well as the amenities of the area and so forth.  When a generic 'scan' is done, it only shows what the potential for that market is based on past sales.  It is cursory at best and is not thorough enough to be something other than just a snapshot of a particular neighborhood.

  • September 16 2010
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Hi Tom,
  I'm having similar problems with Zillow, in the opposite direction. They sent me an e-mail saying my home value dropped 19% in the last month, a ddrop of over 240,000.
  It seems pretty clear that their estimates are hopelessly flawed... I have seen more of them way OFF base than on... There are variables specific to locals and home quality that they simply don't take the time to research properly. It's really too bad they get as much view time as they do, because it's damaging and confusing to the general public.
  Their popularity is simply a matter of good marketing and ease of use rather than accuracy, and that is NOT good for the industry at all.
  • September 16 2010
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