New to Real Estate · Raleigh, NC · Member since 2020 · 32 posts · 13 votes
Do you hire someone to search through zillow and compare the asking price vs zestimate? If so, does the service proof valuable or worth the money spent?
I find myself spending hours searching through zillow listing and using zestimate as a "market value" close enough in most cases. So, i am wondering if everyone else do the same thing, or just hire someone to do it or use a tool that does it.
You are wasting your time. Think about it for a second: If it was that easy, wouldn't everyone be doing that and mismatches be flooded with offers?
Zillow knows nothing more about properties other than basic specs that sold in the past and current listings. A 3 bedroom pit of despair can look identical to a 3 bedroom gem. Zillow doesn't know about "good blocks" and "bad blocks". It can't tell that a roof needs to be replaced, appliances aren't included, etc. Getting within $10k - $40 is something you can do if you focus on any area because similar properties in the same area tend to trade in a range like that.
Actual comps are your best guide. Choose the section of Durham you are interested in and the type of property. Don't choose a profile you can't internalize as most people can't internalize 100 properties at once. Look at all the current listings matching your profile and prior sales. Set your screen to send you new listings matching your profile each day to keep your knowledge fresh.
You can do this on Zillow, but your research needs to become feet on the pavement. You need to actually be in these properties to get a proper appreciation for them as listing pictures don't tell the whole story and actually can be deceiving at times. There are some very clever photographers out there. As you gain experience, especially after owning a few similar properties, you will get to know their consistent quirks and quickly recognize them. (Example: Pink wall tile all around the bathroom and a certain floor pattern = original bathroom and lead pipes underneath have not been replaced). Zillow can't see that.
HI @Alfred Uda, this is an interesting question. The accuracy of the Zestimate varies widely from market to market (though it is certainly significantly improved over the past two years), but the primary hole I see in it both in sale Zestimates and rental Zestimates is that it is far too influenced by list price. For example, a listing in OKC that is overpriced by $50k will mysteriously have a Zestimate about $4k shy of the list price . . . fast forward 6 months when the seller cut the fat off their list price and are at market value . . . the Zestimate either trails on the high side or sits right at the revised value. Why is this? I suspect because they weight the list price as highly as comparable recent sales.
All that to say: I'm not sure what you'd be trying to gain by hiring a person to sift through automated data and make this comparison, but starting with an understanding of Zillow's inherent data accuracy in your market would be a good start :)
@Will Fraser Very well said, thanks for the insight on Zillow's Zestimate, i know we are not suppose to depend on it for the true market value of a property. Your explanation on what influences the Zestimate value makes a lot of sense. For someone looking for a starting point in the value of a property, i always find myself looking at the Zestimate. If it looks promising then i start digging into recently sold comparable properties.
So, here is what i'm trying to accomplish. I will like to filter through listings in Zillow and find properties in my area that there listing price is less than market value say 10K to 40K those are the once i want to look at and potentially make offers on. Does that make sense?
i see where you are coming from and that may be a quick and dirty way to find some under valued house but i would be weary relying on the zestimate as they are often inaccurate. id suggest doing a little bit more digging and see what properties of similar size age and location have sold for recently to giive you more accurate comps
Hi @Michael A DeAngelo and @Will FraserI ended up doing exactly what i was talking about automatically and made a quick and short video about it. In the video i was scraping Durham NC area listings on zillow, data extracted includes property name, zestimate and price then the app. automatically calculated the zestimate and price delta. If you are interested in watching the video search "Web Scraping Zillow zestimate Listing With Price" on YouTube. But, i understand what you mean about zillow's zestimate value and how one should not rely on it for the true value of a property. Thanks for your feedback.
You are wasting your time. Think about it for a second: If it was that easy, wouldn't everyone be doing that and mismatches be flooded with offers?
Zillow knows nothing more about properties other than basic specs that sold in the past and current listings. A 3 bedroom pit of despair can look identical to a 3 bedroom gem. Zillow doesn't know about "good blocks" and "bad blocks". It can't tell that a roof needs to be replaced, appliances aren't included, etc. Getting within $10k - $40 is something you can do if you focus on any area because similar properties in the same area tend to trade in a range like that.
Actual comps are your best guide. Choose the section of Durham you are interested in and the type of property. Don't choose a profile you can't internalize as most people can't internalize 100 properties at once. Look at all the current listings matching your profile and prior sales. Set your screen to send you new listings matching your profile each day to keep your knowledge fresh.
You can do this on Zillow, but your research needs to become feet on the pavement. You need to actually be in these properties to get a proper appreciation for them as listing pictures don't tell the whole story and actually can be deceiving at times. There are some very clever photographers out there. As you gain experience, especially after owning a few similar properties, you will get to know their consistent quirks and quickly recognize them. (Example: Pink wall tile all around the bathroom and a certain floor pattern = original bathroom and lead pipes underneath have not been replaced). Zillow can't see that.