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Old 05-09-2014, 01:15 PM
 
162 posts, read 624,654 times
Reputation: 152

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When I read this in the Wall Street Journal I thought it was a late April Fools Day article. But sure enough Zillow in a desperate attempt to attract more visitors wants to be even more provocative than it already is with its nonsense Zestimates. When 17% of 106 million Zestimates are over 25% wrong it seems inconceivable that anyone would want to extrapolate that data and predict an even more inaccurate forecast for the value in 12 months time.

"To calculate the new estimate, called Zestimate Forecast, the company examined indicators including the supply of homes, the projected local unemployment rate and income growth, and the numbers of homes underwater. The company also takes into account things like the local cost of construction materials, property taxes, and the population growth."

What impact will this have on home sales if the forecast is showing a drop? Maybe this will be the event that motivates the FTC or State Attorney Generals to start action against Zillow for false manipulation of the housing market.

Can Zillow Predict What Your Home Will Be Worth in a Year? - Digits - WSJ
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Old 05-09-2014, 01:41 PM
 
4,542 posts, read 11,542,319 times
Reputation: 3063
guess what, people will flock there.
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Old 05-09-2014, 01:45 PM
 
Location: NC
6,081 posts, read 7,023,877 times
Reputation: 12054
I don't see what all the bad press on zillow is about. An estimate is just that, AN ESTIMATE. A trend line is a trend line. When trend line meets estimate we have an estimate several months out. So what if the values are off, even off quite a bit. Zillow does not have all of the info used by the market, nor does zillow know what improvements a home has. Why does ANYONE rely on the estimate for any reason, other that for getting a ball park idea of how that home relates to others in the same area.

The fault is not with zillow, it is with those of us who think this is a real valuation. Once you accept it is not real, then what difference does it make? Zillow never presents its numbers as fact.
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Old 05-09-2014, 04:23 PM
 
98 posts, read 149,720 times
Reputation: 127
Ugh, I wish the site would take down their stupid "zestimates" all together.

We had TWO listing realtors show up for interviews who told us they would need us to list within a few thousand dollars of the "zestimate" because "the zestimate is always accurate within 10%" (says one) and "buyers won't buy your house if it's too far off the zestimate" (says the other one)

We hired neither realtor, but it irks me that a WEBSITE has this much power!
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Old 05-09-2014, 04:34 PM
 
323 posts, read 567,342 times
Reputation: 825
Quote:
Originally Posted by OuttatheRain View Post
We had TWO listing realtors show up for interviews who told us they would need us to list within a few thousand dollars of the "zestimate" because "the zestimate is always accurate within 10%" (says one) and "buyers won't buy your house if it's too far off the zestimate" (says the other one)
That's really funny. The zestimate on our current property is a complete joke. It places NO value on the amount of land we have and the zestimate is almost 50k lower than the bank appraisal. For the property we just sold, it had the value a full 35k HIGHER than anyone in their right mind would have paid. Accurate within 10%? No way!
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Old 05-09-2014, 09:34 PM
 
Location: Ocala, FL
3,119 posts, read 5,745,422 times
Reputation: 2639
No matter how Zillow wants to change their image/brand, they are still a "pig wearing lipstick". just ask Sara Palin. They are are worth every penny that the public spends to use them.
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Old 05-09-2014, 10:52 PM
 
98 posts, read 149,720 times
Reputation: 127
Quote:
Originally Posted by OnlyWhnChasd View Post
That's really funny. The zestimate on our current property is a complete joke. It places NO value on the amount of land we have and the zestimate is almost 50k lower than the bank appraisal. For the property we just sold, it had the value a full 35k HIGHER than anyone in their right mind would have paid. Accurate within 10%? No way!
Yes! We are also having the issue of it placing NO value on our land, which is more than an acre and a half (and fairly uncommon within our city limits). It's like they picked a number from thin air and placed it on our house.

My jaw nearly hit the floor when those two realtors told us how much they rely on Zillow.

I'm not even a realtor and know that it is pretty worthless.
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Old 05-10-2014, 12:25 AM
 
Location: Albuquerque NM
1,492 posts, read 1,348,978 times
Reputation: 3210
My neighborhood is a desirable downtown neighborhood with older homes but surrounded by poorer neighborhoods. The Zestimates are about $100K too low. I know this for a fact as the home next to mine and the one across the street have sold within the last year for $100K more than the Zestimate. And this is not a city where real estate values are suddenly skyrocketing. We are seeing 2-4% increases per year. Especially if your house has not been sold in many years (most neighbors have been here 10-20 years or more), the Zestimates are rather low. But the realtor.com estimates are right on.
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Old 05-13-2014, 12:41 PM
 
Location: Over yonder a piece
3,758 posts, read 4,291,481 times
Reputation: 5977
The zestimate on our house is ridiculous too. Our market is very strong and our neighborhood is one that people desire to live in. In 2009 the prices balanced out, but they didn't FALL. In fact, we refinanced in 2009 at the height of the bust and our house appraised HIGHER than it had in 2006 at the peak of the bubble.

The zestimate is at least $40K below what we know we could get for our house in today's market. We're not looking to sell for at least 6-7 years, but it's frustrating nonetheless.
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Old 05-13-2014, 01:22 PM
 
Location: Phoenix, AZ > Raleigh, NC
14,297 posts, read 17,491,099 times
Reputation: 22118
Quote:
Originally Posted by OuttatheRain View Post
Ugh, I wish the site would take down their stupid "zestimates" all together.

We had TWO listing realtors show up for interviews who told us they would need us to list within a few thousand dollars of the "zestimate" because "the zestimate is always accurate within 10%" (says one) and "buyers won't buy your house if it's too far off the zestimate" (says the other one)

We hired neither realtor, but it irks me that a WEBSITE has this much power!
I'm so very relieved that you hired neither of those two idiots.
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