This month's Zillow in Phoenix.......

[whodiman]

Also agree it's useless.

Zillow says one of my places is 20k more than it's worth and another place that is 20k less than it's worth. So it's inaccurate and inconsistent.

[asufan]

I once had an investment property in Mesa which zillow used a commercial property as a comp to achieve the value. My current residence is missing the 1,500 square foot basement, but neighbors houses with basements are not missing.

[khuntrevor]

Originally Posted by PhxBarb

Yes, Zillow is worthless. Just said my house declined by $4000. Also said a house in Ocotillo around the corner from me is on ONE ACRE. HAH! Worthless I say.

Barb, didn't you previously state that it was taking a long time for you to sell your house? How far above Zillow are you trying to sell it for?

[sh9730]

Khunt -

Even ZILLOW says they have accuracy issues - more in some places than others - you can go read about how they come up with the zestimates:

Data Coverage and Zestimate Accuracy - Zillow

In the Phoenix area they admittedly are only within 5% of the sales prices about a quarter of the time, within 10% of the sales prices half the time, and even only within 20% of sales prices 3/4 of the time. So in 25% of case even THEY admit they can be more that 20% off....

They even break it down into counties if you want...

So, with so much variation, I just use zillow as a VERY BASIC tool to evaluate trends....

For example, my house went up almost 40% in the last 3 months and then down 10% this month according to Zillow.....even in this market things are swinging up and down like that....

[khuntrevor]

What is interesting though, is that it appears they are looking at available homes and looking forward, unlike the appraisers, who only look at sold comps. In the case of the TH, it sits on a square mile that I've been watching closely for 30 months. The last two months have been unlike any buying I have witnessed over there since I first moved there in 1995. That prompted me to make an inquiry here a few weeks ago about the NW Light Rail extension to Dunlap (property is 400 yards from Northern Station). The answer here was 2023 or something.....well the day after I see the big increase in my Zestimate there is a news report that the Extension may likely be running by 2016. So it does seem they were able to detect a buying frenzy.
Mesa light-rail expansion on track


Also, some of their rent estimates are very accurate. It's far from perfect, but it's a tool.

[S. Chris Webb]

"What is interesting though, is that it appears they are looking at available homes and looking forward, unlike the appraisers, who only look at sold comps."

Just got an appraisal back last month that mentioned pending and active sales on the report, since there weren't enough sold comps in the immediate area. Not as comps, but as a forward-looking gesture. Now a lender wouldn't allow those as comps, so of course appraisers are going to weigh their opinion on solds as much as possible. Appraisers also note whether it is a declining, stable, or increasing market. I see Zillow using "comps" as far back as 2010 - which has little to no relevance on the current market.

You also need to know that the buying frenzy is just about everywhere in the Valley, not just around the 2023 (or 2016, whatever) rail system. Investors from around the world sense that our market is changing, and are rushing in to buy as much of the cheap inventory as possible. This makes me feel very sorry for anybody who is trying to buy an owner occupied home using financing as they can't compete with the multiple, over-list price bids.