Zillow Advice: Zestimates - Why is Zillow showing an estimate for a house at less than 10 % of what it is on the market for? http://www.zillow.com/advice-thread/Why-is-Zillow-showing-an-estimate-for-a-house-at-less-than-10-of-what-it-is-on-the-market-for/436733/ Zillow Advice | Zillow Real Estate Trulia shows the listing, ... http://www.zillow.com/advice-thread/Why-is-Zillow-showing-an-estimate-for-a-house-at-less-than-10-of-what-it-is-on-the-market-for/436733/ Trulia shows the listing, it shows no address however.<br/><br/><a rel="nofollow" href="http://www.trulia.com/property/3044820009-Single-Family-Home-San-Francisco-CA-94115">http://www.trulia.com/property/3044820009-Single-Family-Home-San-Francisco-CA-94115</a> Wed, 28 Mar 2012 01:28:00 GMT http://www.zillow.com/advice-thread/Why-is-Zillow-showing-an-estimate-for-a-house-at-less-than-10-of-what-it-is-on-the-market-for/436733/ 2012-03-28T01:28:00Z You're welcome. The listing ... http://www.zillow.com/advice-thread/Why-is-Zillow-showing-an-estimate-for-a-house-at-less-than-10-of-what-it-is-on-the-market-for/436733/ You're welcome. The listing does not show up on&nbsp;Trulia&nbsp;either. There could be a reason the agent did not post this listing on Zillow &amp; Trulia. It's possible the seller and/or agent do not wish any exposure for such a property on these or other similar sites. Most properties are posted on Zillow &amp; Trulia to increase exposure and most agents pay for these listings to be "featured" to maximize their exposure.&nbsp; Wed, 28 Mar 2012 01:18:00 GMT http://www.zillow.com/advice-thread/Why-is-Zillow-showing-an-estimate-for-a-house-at-less-than-10-of-what-it-is-on-the-market-for/436733/ 2012-03-28T01:18:00Z I am very thankful to all ... http://www.zillow.com/advice-thread/Why-is-Zillow-showing-an-estimate-for-a-house-at-less-than-10-of-what-it-is-on-the-market-for/436733/ I am very thankful to all the people who&nbsp;took their time to answer my initial question. In the process I&nbsp;was made aware of a multitude of facts that I was not familiar with and learned a lot. Thanks!&nbsp; Tue, 27 Mar 2012 23:10:00 GMT http://www.zillow.com/advice-thread/Why-is-Zillow-showing-an-estimate-for-a-house-at-less-than-10-of-what-it-is-on-the-market-for/436733/ 2012-03-27T23:10:00Z Zestimate are non-comparisons ... http://www.zillow.com/advice-thread/Why-is-Zillow-showing-an-estimate-for-a-house-at-less-than-10-of-what-it-is-on-the-market-for/436733/ <p>Zestimate are non-comparisons in broad neighboring regions , not exact like for like nearby comparisons to your subject property . Check with your Realtor for a CMA .</p> Tue, 27 Mar 2012 09:08:00 GMT http://www.zillow.com/advice-thread/Why-is-Zillow-showing-an-estimate-for-a-house-at-less-than-10-of-what-it-is-on-the-market-for/436733/ 2012-03-27T09:08:00Z 2808 Broadway has been on ... http://www.zillow.com/advice-thread/Why-is-Zillow-showing-an-estimate-for-a-house-at-less-than-10-of-what-it-is-on-the-market-for/436733/ 2808 Broadway has been on the market @ $25M for almost 400 days. It's last marked sale was in 1979 for $1.75M. The reason it shows incorrectly on Zillow is because of the following items among other things:<br/><br/>1- Zillow is unaware that the property is for sale for $25M.<br/>2- The data Zillow is using is based on the available public records.<br/>3- These records are partially incorrect and/or out of date.<br/><br/>Zestimates can be quite out of line in some instances.&nbsp;<br/><br/><div>Oggi Kashi<div>Broker Associate, Paragon Real Estate Group CA DRE 01844627<div>All data from sources deemed reliable but subject to errors and omissions, and not warranted.</div></div></div> Tue, 27 Mar 2012 07:10:00 GMT http://www.zillow.com/advice-thread/Why-is-Zillow-showing-an-estimate-for-a-house-at-less-than-10-of-what-it-is-on-the-market-for/436733/ 2012-03-27T07:10:00Z 1) Zillow doesn't show it ... http://www.zillow.com/advice-thread/Why-is-Zillow-showing-an-estimate-for-a-house-at-less-than-10-of-what-it-is-on-the-market-for/436733/ 1) Zillow doesn't show it is on the market.<br/>2) Zillow doesn't indicate it has been on the market any time recently, nor sold recently.<br/>3) The property taxes are $35,363 annually presently.&nbsp; That means if it sold&nbsp; last year, the price would have been 100 times that, due to proposition 13.&nbsp; (Actually, about 83 times that due to other taxes that have been added on).&nbsp; That would put it at about $3 million.<br/><br/>4) Since it didn't sell this past year, the maximum increase in assessed value per year per Proposition 13 is 2%.&nbsp; So, since it appears that it hasn't sold for over 4 decades the "value" in 1972 was likely $3 million divided by 1.02^40 = $1.36 Million.&nbsp; Values in expensive neighborhoods in California have gone up about 25 times since then, so the property could be worth as much as $34 Million.<br/><br/>5) The property 2 doors down from the house sold for $33 Million on 8/10/11.&nbsp; The property behind the house sold for $3.6 Million on 2/3/12.&nbsp; The property next to that one sold for $12 Million on 2/3/12.&nbsp; The property across the street from the house sold for $0.991 million on 12/15/11.<br/><br/>6) Properties in the above $2 million range are difficult to estimate simply due to the relatively small number of those properties that sell per year.<br/><br/>7) Since it has been so long since sold, it is impossible to guess its actual present condition from the public records, but if someone is still paying over $35k on property taxes for it each year, they obviously are not completely ignoring the house, thus it is reasonable to assume that the value is in the $25 million range.<br/><br/>8) Zillow's models have been checked in the higher pricing ranges, and it is found there is some skew downward at the extremely high end.&nbsp; 90% off in the above $20 million range is completely possible and feasible with the present modeling method.&nbsp; There was a graph I posted on that subject some time ago, but I think Zillow intentionally deleted it.&nbsp; And a Realtor&reg; intentionally remotely destroyed my computer operating system and hard drive, so I won't be re-posting the graph any time in the near future.<br/><br/>9) The lot is substantially narrower and the same depth as that of the property that sold for $33 million, so it is definitely worth less than $33 million.&nbsp; That one is Zestimated at $2.2 million.<br/><br/>10) Bedroom count, and lot size are missing from the public records and home details page, so the modeling used is working with less data thus won't get as useful a number.<br/><br/>11) Floor area ratio is exceptionally high on the $33 million property (2.3, implying the entire property is developed with more than 2 floors), implying the property is "over built", and that Zoning in the area allows for overly built properties and lack of open space.<br/><br/>12) Cost per sqft of the $33 million home was $1909.&nbsp; Most people think they can build for way under $350 per square ft, but not a multi-million dollar home due to amenities and finishes.&nbsp; The Zestimate for the property in question is at $342 per sqft.&nbsp; If $1909/sqft was applied, that would put the value at $14.4 million.&nbsp; That may be more reasonable as we are also looking at about 1/2 the land.&nbsp; So even if it had been for sale for more, it may have had no interest.<br/><br/>13) Properties in that price range are often not listed in the Multiples and are "exclusives" and thus also often don't show up for sale on websites like these.<br/><br/>14) Long held properties are much harder to estimate due to lack of info on present condition.<br/><br/>15) If you really want a better idea of present market value, you would need to hire an appraiser, but most owners of properties in that value range have no intention of letting an appraiser in, unless they hired the appraiser, or they already had a valid offer they were considering.<br/><br/>16) You can't get a normal mortgage, even a jumbo mortgage, for homes in that price range, so the appraisal requirements are different, and often people in those income levels pay cash or leverage other assets, so the appraisal is irrelevant to loan funding.<br/> Tue, 27 Mar 2012 02:33:00 GMT http://www.zillow.com/advice-thread/Why-is-Zillow-showing-an-estimate-for-a-house-at-less-than-10-of-what-it-is-on-the-market-for/436733/ 2012-03-27T02:33:00Z " you need to take Zillow's ... http://www.zillow.com/advice-thread/Why-is-Zillow-showing-an-estimate-for-a-house-at-less-than-10-of-what-it-is-on-the-market-for/436733/ " you need to take Zillow's Zestimates with a dose of salt."<br/><br/>I don't live in Pacific Heights but exactly the same comment applies. It applies for over 10 million homes that Zillow has imposed a nonsense valuation. Mon, 26 Mar 2012 23:33:00 GMT http://www.zillow.com/advice-thread/Why-is-Zillow-showing-an-estimate-for-a-house-at-less-than-10-of-what-it-is-on-the-market-for/436733/ 2012-03-26T23:33:00Z Pacific Heights is a market ... http://www.zillow.com/advice-thread/Why-is-Zillow-showing-an-estimate-for-a-house-at-less-than-10-of-what-it-is-on-the-market-for/436733/ Pacific Heights is a market that has a high demand and a broad range of property types so you need to take Zillow's Zestimates with a dose of salt.<br/><br/>Focus on the recent sales in the area along with the trend of listing price realized on closed sales. Zillow has closed sales by neighborhood area <a href="http://www.zillow.com/homes/for_sale/Pacific-Heights-San-Francisco-CA/#/homes/for_sale/Pacific-Heights-San-Francisco-CA/268385_rid/37.80154,-122.406217,37.783396,-122.463938_rect/14_zm/1_rs/">here</a>, but a local agent can give you even more information from the local MLS. Mon, 26 Mar 2012 22:57:00 GMT http://www.zillow.com/advice-thread/Why-is-Zillow-showing-an-estimate-for-a-house-at-less-than-10-of-what-it-is-on-the-market-for/436733/ 2012-03-26T22:57:00Z Because Zillow hasn't seen ... http://www.zillow.com/advice-thread/Why-is-Zillow-showing-an-estimate-for-a-house-at-less-than-10-of-what-it-is-on-the-market-for/436733/ Because Zillow hasn't seen the house. Zillow is a valuable resource but cannot replace the human touch. Thank goodness for us humans! Mon, 26 Mar 2012 22:47:00 GMT http://www.zillow.com/advice-thread/Why-is-Zillow-showing-an-estimate-for-a-house-at-less-than-10-of-what-it-is-on-the-market-for/436733/ 2012-03-26T22:47:00Z