What is a Foreclosure Estimate
What is a Foreclosure Estimate?
Across most of the country, foreclosed homes sell for less than they would sell for in a traditional sale. The amount of this discount varies by region. Zillow tracks this discount by comparing the sale price of foreclosed homes with that home’s Zestimate® home value on the day of the sale. When we aggregate this data on the ZIP code and county level, it gives us an idea of the median discount of foreclosed homes. For example, a foreclosed home in King County, Washington may sell for 10% less than it would sell for in a traditional sale.
To calculate the Foreclosure Estimate, we then apply this discount to individual Zestimates. The result is a starting point for determining how the discount for which a foreclosed home may sell. Of course, this will be influenced by factors like the condition of the home. We encourage buyers, sellers and homeowners to supplement Zillow’s information by contacting a foreclosure specialist.
What is Below Zestimate?
It is the estimated discount gained by buying this home in a distressed state, versus how much a buyer is likely to pay for it in a traditional sale. The number comes from the difference betweeen two estimated market values calculated by Zillow: the Zestimate and the Foreclosure Estimate. The Foreclosure Estimate incorporates foreclosure data; the Zestimate does not.