Profile picture for ptlsearch

what is the rough formula for the zestimate ? how often does that formula change ?

How does the formula account for the housing bubbles and inflated prices on loans never paid back ? For instance, the last 10 years, during the lending induced bubble. Are those prices being used to form a basis for homes purchased under today's more sound lending practices ? What is the weighting for those previous bubble prices being used as a basis to assess 2012 values. More generally how much does the past get weighed in these zestimate models ? For instance if the next door neighbor property sold 6 years ago for 1M on a loan that was never paid and the another sold yesterday for 400k does zestimate weigh the 1M price even though the money was printed and given to a seller but never paid back to the bank.
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March 23 2012 - Allston
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"Rough" is the appropriate description for the zestimate algorithm. I was shocked to read the resumes of the zillow development team and not one of them had any relevant experience prior to working for zillow. Is it any wonder that the zestimate algorithm is so flawed? If you also take into account zillows notorious reputation for poor data integrity in how it imports 3rd party supplier details into its flawed algorithm then the zestimate valuations are actually 'rougher than rough'.

When they clearly demonstrate such poor performance it intrigues me why they outright refuse all requests from homeowners to correct or delete erroneous valuations. Time they were subjected to some form of regulation to stop this nonsense and the damage they are doing to an already struggling housing market.
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March 23 2012
Profile picture for wetdawgs
How often does the formula change?  Not very often.  Zillow announces when there are changes, the last one was June 13, 2011. 

You are asking a number of questions about Zillow's algorithm that are likely to be proprietary.     I suspect Zillow isn't taking into account the mortgage status, only the actual recorded sold price. 

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March 23 2012
 
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