Tracking Zillow’s Zestimates One Property at a Time
February 16th, 2007 categories: Real Estate Market
I’ve written a few times about Zillow.com and the (in)accuracy of their zestimates. I’ve been tracking one property in particular on a monthly basis and I thought I would share with you my findings. Out of respect for my clients who purchased this house, I will not give you the address but it is a real place and these are real figures.
House Description: 4 bedroom, 2.5 bath, 2200 sf, 2 car garage, colonial on 1 acre, built in 1979, full walk-out basement in Shelton, CT. House was only one of a few available in this highly desirable section of Shelton under $500,000.
List Price: $489,900
Comps: $499,000 and $477,000 - comparable in size, age, location, style and both sold within 3 months of this home
Offer Price: $465,000
Final Sales Price: $470,000
Appraisal Value: $470,000
Sold Date: 1/26/07
According to Zillow’s Zestimate, house was valued as follows (figures are rounded):
November 06: $460,000
December 06: $455,000
January 07: $450,000
February 07: $430,000
So, despite all other indications that the market has not crashed, this particular property dropped $30,000 in value in four months? Puhlease!
Some interesting facts:
- Zillow does not yet have the sales data from this property (sold date 1/26/07) and it’s now 2/16/07 - data is out of date
- Zillow is using comps for condominiums - like comparing apples and oranges, to be cliche
- Zillow is using comps that are miles away from this property even though there are excellent comps within one mile
I’ll let you know what Zillow says the value is when the most recent sales data is figured into this equation.
I love the fact that you have been tracking Zillow in this matter! Not only are you right on queue with the major press but your independent study supports every thing that has been said about the numbers from the appraiser world and higher up financial reporters.
I cannot tell you how much I appreciate a real estate sales/buyer professional coming out and making this fact be known. Some would take the number that the homeowner has got off of a site and run with it just to make life easy and gain a listing.
By calling the Z-thingy out you are showing that you’re a fair and honest resource.
If the numbers are off in one direction then they are off in the other.
I wonder if even has an appraiser working for them, or if they hire appraisers to do reviews of the numbers let a loan point out the difference in property type as you have in your article? But then again, who needs to pay money for a professional when you can go off the gossip found at every back yard barbeque.
Please keep up the Great Work!
I think the concept of Zillow is great and noble but the execution is poor. Real estate is based on local markets and without local expertise, data and trends, their information is meaningless at best and at worst, harmful to the consumer.
Ooooh the condo vs residential home is a good pick.
The zillow zestimates have always been iffy. Not like it can see inside the house and see the brand new kitchen and bathrooms that were put in. Nor can zillow smell cat urine.
The Zindex stuff is better, and Zillow does generally show solds and prior tax information pretty well.
Hi, it’s David from Zillow.com
Great blog - thanks for reporting on your experiences with Zillow and your listings in general.
It’s important to remember that Zillow can never replace a CMA or an appraisal. Our site provides a useful starting point when researching house values but we’ve never visited the home — so buyers and sellers are not to view the Zestimate as the final word — and most of the homeowners I speak with seem to understand that.
I hope they, the homeowners or buyers, do understand this. But we’ll see as time goes by if this proves to be true.
No, Athol, we agents are the ones who get to relish the cat urine odor. Sometimes I wish I were a computer locked in a room in California so I wouldn’t count that as a life experience.
David,
Thank you for pointing out the difference in you estimates and CMA’s or Appraisals. I would love to talk to you about how your company could work with those of us that actually inspect the properties.
Even if the numbers are on or off, no one can deny the interest that you have wrangled from homeowners or their responses.
What cat smell? At least in the winter your too cold from doing the exterior to worry about the cat smell most of the times.
[…] Original post by berealct […]
Thanks for posting this article. I’m unquestionably frustrated with struggling to search out germane and brilliant comment on this topic. Everybody today goes to the very far extremes to either drive home their viewpoint that either: everyone else in the planet is wrong, or two that everyone but them does not really understand the situation. Many thanks for your succinct, pertinent insight.