Investor · Philadelphia, PA · Member since 2015 · 172 posts · 58 votes
Does Zillow (or other listing sites for that matter) have fairly accurate estimates or should you only rely on getting appraisal or inspecting and comparing to comps?
Investor · Fort Lauderdale, FL · Member since 2017 · 95 posts · 72 votes
6y
The Zestimate is an output from their automated valuation model (AVM).
AVMs are great benchmarking tools and they are helpful in analyzing massive amounts of data, but an on-the-ground valuation is usually closer to reality.
For some color, at Fannie Mae, we built a discount into the HAMP NPV tool for AVM because it usually overshoots value for a distressed asset.
Lender · Farmington, CT · Member since 2015 · 542 posts · 321 votes
6y
@Ben Feder yea do not even look at the zestimate. compile sold listings and generate a value. i wish zillow was accurate for convenience purposes, but it is not.
Investor · Philadelphia, PA · Member since 2015 · 172 posts · 58 votes
6y
Thank you all for your input! I guess then besides the on-the-ground inspection and comparison, looking for comps sold will be good if I calculate on a per square-foot basis?
Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
6y
It really depends on the area and the property. If it's just basic property in some areas the estimates are pretty close, but once you start talking about any kind of upgrade or special features it becomes way less accurate. For laughs the Zillow estimate range a property I was looking at was 150k and the estimate it self was basically the sold price...and it was lower than all the other sites.
House canary is a paid service with quite a bit more detail that should give you better idea. Note I haven't actually compared that to an actual appraisal so do your own research.
It can be accurate. It can also be inaccurate. Do the research now and comp the hard way. After a couple months of this, you'll know values in your market of choice off the top of your head anyways.
San Antonio, TX · Member since 2019 · 930 posts · 836 votes
6y
Like a broken clock it is occasionally right, but generally is off a pretty significant amount. Right now it says my personal residence is worth about 20% more than I would be able to see if I sold it.
Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
6y
Nope..... but the common public that doesn't have any real knowledge of the RE market has no clue, so be prepared for the common buyer/seller to reference it a lot......
Rental Property Investor · n/a · Member since 2019 · 143 posts · 117 votes
6y
In my experience is has not been accurate at all. I have seen it both much higher, and much lower than actual appraisals.
My primary residence says $282,200 right now and it was appraised at $270,000 6 months ago. At the time the zestimate was actually even higher, around $295,000. Big difference of $25,000 there. I was applying for a HELOC at the time and it was a big let down seeing that.
I just closed on another property. The listing price was dropped a couple times and I watched as the zestimate seemed to adjust with it. I bought for $206,500 with a $4,000 seller concession, it appraised for $215,000. I checked the zestimate again and it just happened to be at $202,400.
It can be a useful number for a ballpark figure, but you won't know the true value without a real appraisal and looking at comps yourself.
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
6y
The "a" in Zillow stands for "accuracy."
If anyone wants to offer me the Z value for my personal home, with no appraisal contingency and 3% EMD, I will sign that contract immediately... Redfin is even more ridiculous, I'll take that offer even faster.
And this is an area with many many exact model match comps selling, so the line about "oh if your house is like a bunch of others then it's ok" is also about as accurate as a Z value.
Rental Property Investor · New York City · Member since 2019 · 703 posts · 538 votes
6y
Zillow and all other free online sites should only be used to see the Sale History. With current sale history you can have a strong idea of an estimate. You need actual comps for accuracy.
Investor · NJ · Member since 2019 · 80 posts · 71 votes
6y
I am pretty new to the site, and getting sales comps definitely seems like the best bet. But for perspective - just refinanced my house about 2 months ago (appraised for $290K) and here is what the sites are saying:
Rental Property Investor · Cape Girardeau, MO · Member since 2019 · 8 posts · 5 votes
6y
@Ben Feder I suggest getting familiar with pricing in your area. Zestimates are very inconsistent in my area, some high and some low. If you are using a buyers agent, they may be able to find some comps to support pricing on a specific property.
Personally, if I am looking at a market I know nothing about and want a quick feel I would use the Zestimate NOT ONLY for the house I am looking for HOUSES around it.
That is how you get a good idea of the area and your house of interest.
@Ben FederThe main difference is that Realtor.com has listings that are inputted into any of the regional MLS systems, systems operated as non-profits and overseen by a board of local brokers, where Zillow or Trulia aggregate their listing data from individual broker sites (Coldwell Banker's listings automatically syndicate to ...
@Lydia T.The main difference is that Realtor.com has listings that are inputted into any of the regional MLS systems, systems operated as non-profits and overseen by a board of local brokers, where Zillow or Trulia aggregate their listing data from individual broker sites (Coldwell Banker's listings automatically syndicate to ...
Investor · Austin TX · Member since 2016 · 1k+ posts · 2k+ votes
6y
@Aaron Maxwell You can use Realtor.com or Zillow to get a general approximation of value, but if you are buying something in a different state it seems like you would want the most accurate information to help with your decision making process. I cant imagine buying a property because Zillow said its worth X only to rehab and put it on the market and find out that no one will pay X for it.
@Ben Feder I suggest getting familiar with pricing in your area. Zestimates are very inconsistent in my area, some high and some low. If you are using a buyers agent, they may be able to find some comps to support pricing on a specific property.
Finding comps seems like a very important factor to consider to approximate the correct value. I know looking at recently sold homes is a good way to go, but how do you actually do this process of analyzing recently sold properties--they are not the same square footage and they have different features/room numbers, etc. Do you figure out based on a per square foot basis and calculate from there, count number of bedrooms/bathrooms, etc.? What is the right way to go about this?
Hello Ben! Only trust the real estate professional and maybe yourself to come up with the value, not Zillow or others that support Agents or pay Agents and themselves that are not real appraisers.
I do not not know why or what anything is worth from just driving by or using indirect knowledge and adding a percentage to it to be safe. You are the only one that should be liable except an experienced and professional.
Too many are getting away with what they are doing with Attorneys protecting them. Too many laws have been passed without them really being looked at while the politicians are stuffing money into their pockets. You are the one that must be responsible. Do not just hope something is right. Your knowledge must be dependable and be wealthy unless you are a real good ********ter and could sell termites. You are reading someone that has about 30 years of real estate and construction experience.
Real Estate Broker · Indianapolis, IN · Member since 2019 · 9 posts · 2 votes
6y
@Ben Feder I wouldn’t place too much weight on the Zestimate. When marketing my properties, I noticed that their estimated value will rise or fall depending upon how much I list the property. Definitely raised red flags for me regarding their approach.