Real Estate Prices in Naples and Price Appreciation (Miami, Miami Beach: for sale, 2015)

[Corrie22]

FS...Zillows formula is very simple....they take the asking price in the area of semi-like houses.....and then what they actually sold for....figure the difference the percentage...and that's what you get

...they also figure in foreclosures like regular sales.....which throws everything off

and if they miss a house that sold....which they do....that can throw everything off even more

[FireStation46]

Originally Posted by Corrie22

FS...Zillows formula is very simple....they take the asking price in the area of semi-like houses.....and then what they actually sold for....figure the difference the percentage...and that's what you get

...they also figure in foreclosures like regular sales.....which throws everything off

and if they miss a house that sold....which they do....that can throw everything off even more

It would be interesting to calculate their “correct” ratio: what they estimate vs. what is sold for.

They have no skin in the game right or wrong. Eventually a smart class action lawyer will figure it out and then watch!

[markjames68]

Originally Posted by FireStation46

Well, if Zillow is be be trusted (slightly) my home is up 21% in the past year.

I bet they are off as they really can’t tell since they can not capture what is inside the house i.e. Jenn-Air vs. whatever the big box stores sell, LED interior lighting, whole home dehumidifier, etc

Zillow is nowhere near accurate overall. I think 50% of the time it’s within 90%.

The other problem is that you can build with all the high end amenities and most of them are “nice to have but buyers won’t pay more for them” according to my last Naples agent. I concur.

[FireStation46]

Originally Posted by markjames68

Zillow is nowhere near accurate overall. I think 50% of the time it’s within 90%.

The other problem is that you can build with all the high end amenities and most of them are “nice to have but buyers won’t pay more for them” according to my last Naples agent. I concur.

Understood but we get a lot of use out of the additions. I.e. Nice to have a dishwasher that runs without noise, a fridge that drops ics in the internal bucket without making a racket etc.

[markjames68]

Originally Posted by FireStation46

Understood but we get a lot of use out of the additions. I.e. Nice to have a dishwasher that runs without noise, a fridge that drops ics in the internal bucket without making a racket etc.

Absolutely, but you’d be amazed at how many people care about the label more than the features.

[Corrie22]

Originally Posted by FireStation46

It would be interesting to calculate their “correct” ratio: what they estimate vs. what is sold for.

They have no skin in the game right or wrong. Eventually a smart class action lawyer will figure it out and then watch!

It constantly changes....every time a house sells

[markjames68]

Originally Posted by Corrie22

It constantly changes....every time a house sells

Part of their metric is to compare the houses sold with % of asking price.

I'm not sure why that is useful, because again they never see the inside of any house to compare finishes or appliances. So if you have a home in good shape with recent replacements, it should be worth more than the ones which had to reduce their price to sell. But you will get hit with the lower Zestimate.

[Corrie22]

That's what I said Mark.....plus they include foreclosures, short sales, etc
...have a few foreclosures sell...miss a couple of houses that sold for top dollar...which they do
...and every house in the neighborhood crashes...like a fire sale

..and you're exactly right....it's not really useful at all

[markjames68]

Originally Posted by Corrie22

That's what I said Mark.....plus they include foreclosures, short sales, etc
...have a few foreclosures sell...miss a couple of houses that sold for top dollar...which they do
...and every house in the neighborhood crashes...like a fire sale

..and you're exactly right....it's not really useful at all

All it does is have people try and lowball you when you're selling

[Corrie22]

Originally Posted by markjames68

All it does is have people try and lowball you when you're selling

...you are exactly right

realtors have to sell houses to make a living.....on a percentage...

less real cash to the seller....is not that much difference to them