Zestimate accuracy (sale, how much, house)

[nitynity]

How reliable are Zillow estimates (Zestimate)?

We are listing our house and the realtor advised to go way below Zestimate (50K) to get quick offers based on his comps of the area. But none of the comps are really identical to our house, the closest one being 200sqft bigger but with a tiny lot and a pool. We have a big lot (double the size of the comp) and pool and a creek facing backyard with big trees and privacy. You can't see the neighbor's house because of the creek/wooded area behind.

Will the bigger lot/privacy/view justify the smaller sq footage during appraisal? In addition, the said house is under contract and asking price matches Zestimate as well. We were planning to list at Zestimate, but now the Zestimate went up another 10K.

Consulted with a friend of mine, who had a realtor pull the same trick on one of his friends, trying to low ball on the house for a faster sale. His friend stood with his price and ended up getting around 10 offers in the first 2 days, some even above asking price.

I am wondering if it's worth doing an appraisal before listing just to get an idea. Realtor thinks no as its waste of money in case appraisal comes lower. Makes me curious if these realtors are really working on your best interest or make a quick sale with minimal effort. After all he makes $1500 more if going with a higher price.

We were told the property is listed as Coming Soon in MLS, but even after 7 days, it's not showing up on Zillow or any other sites as Coming Soon. Is that standard?

[goldenage1]

I think I would find another Realtor quickly if you have not signed with this guy yet. Zestimate accuracy varies with local conditions. They do not take account of more subjective things like ocean views and privacy. You also do not have to take his advice to put up a low-ball estimate. Frankly, I do not understand why a Realtor would want a low-ball estimate, as it lowers his commission.

I suspect the "Coming Soon" is a proprietary feature of the local MLS, and not available to Zillow.

[GunsMass]

Given the current demand for housing, if you list for too low, you'll know pretty quick and competing buyers can offer over list price.

OTOH, if you list too low, you'll know that as well, and you can lower accordingly.

For a technical answer, I guess it depends on how much an appraisal costs for vs. margin of error on estimate (according to google, 2% for zillow.)

[adelphi_sky]

For me it is 10% too low. I just had my house appraised.

[cvetters63]

Your realtor is full of crap. An independent appraisal helps, but sometimes you ARE the comp and someone has to set the value, as there's nothing similar on the market in your area. I'd take the independent appraisal, look at the best comps and price slightly below the appraisal (and I'm talking only slightly) to get offers coming in. Too high and you can sit on the market too long and people start to wonder what's wrong with it (and dropping the price shortly can look suspect as well and offers will be well below asking). Too low and you're leaving money on the table. A GOOD realtor can walk you through your local market.


Zestimates can lag behind the market, not reflect updates, and not reflect intangible effects on your individual location.