All Forum Posts by: Lori Greene
Lori Greene has started 61 posts and replied 431 times.
Post: Is Zillow Zestimate Accurate? What's your opinion?
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
Originally posted by @Andy Bartley:
Realtor.com = highest valuations (make homeowners feel the best so they keep coming back)
Zillow.com = high and comp selections seem to be overly biased to recent transactions
Redfin = most realistic but sometimes over-indexed to historical transactions.
One useful resource on Zillow is the data page at Zillow.com/data. You can pull great reports on local trends which helps with analysis at the MSA and Zip levels. In my experience its most useful for trend analysis and comparing between regions. For example if you want to compare 10 zip codes across home values, days on market, etc. to narrow a search the Zillow data can be useful. I've found it to be very clean and consistent across different geographies.
Andy, thanks for the info about the data page on Zillow. I'll have to check into that. FYI, Redfin does not covers all states. It can be fairly accurate in some. In a recent test I did on my own home, it did come closer to the appraised amount than the others but still not as close as a CMA from a Realtor.
Post: Is Zillow Zestimate Accurate? What's your opinion?
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
Originally posted by @Daniel Matarazzo:
@Lori Greene
Www.zillow.com/zestimate
The truth from Zillow themselves, their algorithms are very good, but miss a lot, especially pertaining to condition of property.
Read for yourselves
Dan Matarazzo
Real Estate Professional
Coldwell Banker, foothills office
Tucson, AZ
Yes, I've seen their disclaimers. And I heard they recently came out with a new algorithm that uses the photos in it's database to compare condition, upgrades, curb appeal, etc. But I also hear it isn't any more accurate, maybe because it's not always sure what it's looking at.
Post: How to Get Realtor Comps w/o contacting a Realtor - all online!
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
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It's a simple concept. You fill out a short order form with details of the property, they assign it to an agent in your area, you get your comps report via email usually within 24 hours.
Plenty of BiggerPockets members use this service for convenience when they can't get comps right away from their own Realtor.
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To try it out or learn more: Online Realtor Comps Service for an accurate property estimate.
Post: Is Zillow Zestimate Accurate? What's your opinion?
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
Originally posted by @Jerry Holt:
I use sites like Zillow, Redfin, Trulia, Realtor.com etc. to obtain an estimated values only. I wouldn't use them for anything other than a rough estimate though.
I use them for entertainment purposes and for property info, photos, etc. Then I get an accurate value from a Realtor.
Post: Is Zillow Zestimate Accurate? What's your opinion?
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
Originally posted by @Tyler Bushey:
The "A" in Zillow stands for accuracy
That is too funny Tyler. Made me laugh out loud!
Post: Is Zillow Zestimate Accurate? What's your opinion?
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
Originally posted by @Joe Splitrock:
Originally posted by @Lori Greene:
Originally posted by @Joe Splitrock:
Originally posted by @Lori Greene:
Originally posted by @Joe Splitrock:
@Lori Greene if you look at objectively, Zillow is pretty good considering it is completely algorithm based system. Of course there is never a substitute for someone walking into a property to view condition actual condition and amenities. Zillow is actually more accurate than our county assessments because Zillow uses near by sales data. Our county assessor uses square feet, number of plumbing fixtures, number of fireplaces and neighborhood class value. They think that formula detects homes with higher end finishes, but not always.
Even when people evaluate property value, it depends on what comparable properties they choose, which means you need a skilled person doing the analysis. Two identical houses a half mile away may not sell for the same price. One may be on a busy road, the other next to a city park. Two similar square foot homes can also vary greatly in condition and finishes. The formulas mostly use square feet, but location, quality of finishes, floor plan and condition all play into the real value.
Of course the other factor is what value Zestmate comes up with. People dislike Zillow more if it is undervaluing their property, versus overvaluing. Which brings up the point, there is a difference between not agreeing with Zillow and it not being accurate.
Realtors hate Zillow, but the smart ones understand it is used extensively by buyers, so it is best to work with Zillow rather than against it. You can edit property details and it affect the value, but the change takes time.
Joe, I'm sure that Zillow can sometimes be accurate, but don't you think that Realtor comps would be more accurate? And to your point about people not liking Zillow when it under values a house, it all depends on what the goal is (which isn't always to sell). Imagine paying more for a house than you had to because you believed a Zillow Zestimate that supported an overpriced home for sale when maybe Realtor comps would show a much lower value and give you negotiating power.
Or sometimes the home owner is trying to fight their property taxes that have gone way up for no apparent reason and Zillow shows it over valued as well. We get comps for people all the time where Realtor comps show that Zillow had it over priced.
I say this because recently, I was refinancing my home and Zillow had it valued more than $100k over it's actual value (as shown in the appraisal and supported by Realtor comps). If I had gone with the Zillow value and tried to get that extra cash out, the appraisal would not have supported it.
But I do agree with you that Zillow does have its uses. Just shouldn't be relied upon as a final value without actual supporting Realtor comps.
Like I said, Zillow is no substitute for someone walking the property. No software program in the world can see things beyond the data that was input. That is where the human factor comes in.
Keep in mind that realtors are using the same data as Zillow to find value. They also use software. The only difference is realtors are doing adjustments and hand picking comparable properties. Does that make the evaluation better? Maybe. When you select the comparable properties, you have opportunity to push value up or down. I regularly see appraisers select properties that push value down. I have also seen three realtors evaluate the same property and come up with $30K deviation in value. They each have comparable properties to support their numbers. Who is right?
In your case, did you go into Zillow and review the comps that Zillow was using to determine value? As an owner you can see and even manipulate which properties are used. That would shed light on why Zillow is overvaluing your property.
Being in the business that I'm in and constantly seeing Realtor comps reports, appraisals and AVM values everyday, I don't see that Zillow is as accurate. I see instances where a values shows as one thing one day and $50k lower the next but the MLS comps remain the same.
I never said Zillow was perfect, but that partly depends on the quality of the property data. If you edit property details, so they are accurate and manually select the comps it is is using, it gives you a pretty accurate private estimate. That is really all that realtors are doing, using the MLS sales data and doing comps. It comes down to location, finishes, amenities and square feet. That is how realtors, appraisers and Zillow arrive at value.
Most people don't know you can edit your property details and you can manually select comparable. That greatly increases accuracy of Zillow. Of course it depends on market too. In my market, Zillow has good access to data, but in some markets they are blocked, so it makes it harder for the algorithm to work.
Like it or not, property valuation has increasingly relied on software algorithms. Trust me even realtors and appraisers are using software, have for years.
I see your points and I'm sure there is more that can be done with Zillow info that most people realize. And I do see that both Zillow and Realtor have their uses. I do use Zillow for certain info and I do use Realtors for comps and insights that aren't on Zillow. I see the value in using both.
Post: Is Zillow Zestimate Accurate? What's your opinion?
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
Originally posted by @Joe Splitrock:
Originally posted by @Lori Greene:
Originally posted by @Joe Splitrock:
@Lori Greene if you look at objectively, Zillow is pretty good considering it is completely algorithm based system. Of course there is never a substitute for someone walking into a property to view condition actual condition and amenities. Zillow is actually more accurate than our county assessments because Zillow uses near by sales data. Our county assessor uses square feet, number of plumbing fixtures, number of fireplaces and neighborhood class value. They think that formula detects homes with higher end finishes, but not always.
Even when people evaluate property value, it depends on what comparable properties they choose, which means you need a skilled person doing the analysis. Two identical houses a half mile away may not sell for the same price. One may be on a busy road, the other next to a city park. Two similar square foot homes can also vary greatly in condition and finishes. The formulas mostly use square feet, but location, quality of finishes, floor plan and condition all play into the real value.
Of course the other factor is what value Zestmate comes up with. People dislike Zillow more if it is undervaluing their property, versus overvaluing. Which brings up the point, there is a difference between not agreeing with Zillow and it not being accurate.
Realtors hate Zillow, but the smart ones understand it is used extensively by buyers, so it is best to work with Zillow rather than against it. You can edit property details and it affect the value, but the change takes time.
Joe, I'm sure that Zillow can sometimes be accurate, but don't you think that Realtor comps would be more accurate? And to your point about people not liking Zillow when it under values a house, it all depends on what the goal is (which isn't always to sell). Imagine paying more for a house than you had to because you believed a Zillow Zestimate that supported an overpriced home for sale when maybe Realtor comps would show a much lower value and give you negotiating power.
Or sometimes the home owner is trying to fight their property taxes that have gone way up for no apparent reason and Zillow shows it over valued as well. We get comps for people all the time where Realtor comps show that Zillow had it over priced.
I say this because recently, I was refinancing my home and Zillow had it valued more than $100k over it's actual value (as shown in the appraisal and supported by Realtor comps). If I had gone with the Zillow value and tried to get that extra cash out, the appraisal would not have supported it.
But I do agree with you that Zillow does have its uses. Just shouldn't be relied upon as a final value without actual supporting Realtor comps.
Like I said, Zillow is no substitute for someone walking the property. No software program in the world can see things beyond the data that was input. That is where the human factor comes in.
Keep in mind that realtors are using the same data as Zillow to find value. They also use software. The only difference is realtors are doing adjustments and hand picking comparable properties. Does that make the evaluation better? Maybe. When you select the comparable properties, you have opportunity to push value up or down. I regularly see appraisers select properties that push value down. I have also seen three realtors evaluate the same property and come up with $30K deviation in value. They each have comparable properties to support their numbers. Who is right?
In your case, did you go into Zillow and review the comps that Zillow was using to determine value? As an owner you can see and even manipulate which properties are used. That would shed light on why Zillow is overvaluing your property.
Being in the business that I'm in and constantly seeing Realtor comps reports, appraisals and AVM values everyday, I don't see that Zillow is as accurate. I see instances where a values shows as one thing one day and $50k lower the next but the MLS comps remain the same.
Post: Is Zillow Zestimate Accurate? What's your opinion?
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
Originally posted by @Alvin Uy:
Originally posted by @Lori Greene:
Originally posted by @Alvin Uy:
Valuation-wise... Its terrible and highly inaccurate in Los Angeles where many homes are unique... and wildly appreciating. Sometimes even off by $100k. I recently just had my house appraised by bank while I was getting a Heloc.. It appraised at $1.34M... while zillow says its only $1.21M. It was a happy surprise.
The rent estimates, however, are pretty close (probably due to Rent Control).
Alvin, I had the same thing happen when I was doing a refi. Zillow had my house valued at over $600k but then Realtor comps and appraisal confirmed only $500k value. That's a huge difference and could be a disaster under different circumstances.
Yup... I do think though the appraisers tend to be much much more conservative when they are appraising for a refi.
I should've mentioned that my wife (who is a realtor) pulled comps. These comps are literally within the same block and even 4 houses down the street.... similar sqft and lot sizes. She was disappointed and was certain we would at least get 1.5m. She commented that the "appraiser is just as bad as Zillow". LOL.
Interesting.
Post: Is Zillow Zestimate Accurate? What's your opinion?
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
Originally posted by @Alvin Uy:
Valuation-wise... Its terrible and highly inaccurate in Los Angeles where many homes are unique... and wildly appreciating. Sometimes even off by $100k. I recently just had my house appraised by bank while I was getting a Heloc.. It appraised at $1.34M... while zillow says its only $1.21M. It was a happy surprise.
The rent estimates, however, are pretty close (probably due to Rent Control).
Alvin, I had the same thing happen when I was doing a refi. Zillow had my house valued at over $600k but then Realtor comps and appraisal confirmed only $500k value. That's a huge difference and could be a disaster under different circumstances.
Post: Is Zillow Zestimate Accurate? What's your opinion?
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
Originally posted by @Lien Vuong:
It's one metric but still an automated one, only used a secondary source for pricing. Professional CMA is still primary and most accurate.
Lien, I agree that nothing beats an in-depth CMA for accuracy.