Have you bought a house that Zillow said it was worth X less?

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Have you bought a house that Zillow said it was worth X less?

Account Closed
Rental Property Investor · Yuma, AZ · Member since 2019 · 637 posts · 46 votes

Have you bought a property that zillow said it was worth lets say (example) 100k and then you sold it for 150k?

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Charlie MacPherson
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
7y

@Account Closed Zillow's "Zestimates" are a joke - and a bad joke at that.

If you drill down deep enough, you'll find Zillow's own statement on their accuracy.  While the Zestimate is presented in huge, bold lettering, you'll need an electron microscope to find the link to their disclaimers.

Here in the Boston market, Zillow claims to be within 10% of the sale price 79.3% of the time.  That means with an average sale price of about $550,000, their own claimed error is GREATER than $55,000 in 20.7% of Zestimates.

Worse, I've seen them create new listings out of other listings.  In my case, they took an active listing and combined it with another that hasn't been on the market for years and made a third listing that has never existed.  I got an irate phone call from another agent who thought I stole her listing photos.

And even worse than that, their false data pollutes the minds of my seller clients.  I can't tell you how many times I've had to fight the battle of "Zillow says my house is worth $XXX,XXX.  Why do you want to list it for less?"

They have a big name. They have a big website and mobile app - and that (false) number is right there.  Why wouldn't they believe it?

And my favorite...not updating results.  Like the photo below from November 2016 from a home sold 8 months prior.

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  • Mike CumbieBusiness Member
    REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
    7y

    Yes, Zillow estimates are based on equations written by people who are no where near the area. So if they are bringing public water and sewers to an area, Zillow has no clue. If the town voted to remove all non grandfathered in duplexes, Zillow does not know. They are a tool and can be used but when I run comps I use 5 sources and get to a number that gives me what I consider the best picture. They often vary greatly, but using all of them helps. Plus I know what sold in that neighborhood and what a half bath really means around me.

    Good luck!

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  • Account Closed
    Real Estate Agent · Cleveland, OH · Member since 2019 · 359 posts · 295 votes
    7y

    @Fili Aguirre yes, Zillow estimates are not to be trusted. Also, I've had houses where its estimate is very low and as soon as i list at market value, zillow eventually catches up and changes the zillow estimate to around the list price unless it's a coincidence lol.

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  • Charlie MacPherson
    China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    7y

    @Account Closed Zillow's "Zestimates" are a joke - and a bad joke at that.

    If you drill down deep enough, you'll find Zillow's own statement on their accuracy.  While the Zestimate is presented in huge, bold lettering, you'll need an electron microscope to find the link to their disclaimers.

    Here in the Boston market, Zillow claims to be within 10% of the sale price 79.3% of the time.  That means with an average sale price of about $550,000, their own claimed error is GREATER than $55,000 in 20.7% of Zestimates.

    Worse, I've seen them create new listings out of other listings.  In my case, they took an active listing and combined it with another that hasn't been on the market for years and made a third listing that has never existed.  I got an irate phone call from another agent who thought I stole her listing photos.

    And even worse than that, their false data pollutes the minds of my seller clients.  I can't tell you how many times I've had to fight the battle of "Zillow says my house is worth $XXX,XXX.  Why do you want to list it for less?"

    They have a big name. They have a big website and mobile app - and that (false) number is right there.  Why wouldn't they believe it?

    And my favorite...not updating results.  Like the photo below from November 2016 from a home sold 8 months prior.

    2Reply
  • Account Closed
    OP
    Rental Property Investor · Yuma, AZ · Member since 2019 · 637 posts · 46 votes
    7y

    @Charlie MacPherson thats terrible, Thank you Charlie for sharing all that information with me

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