Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Are Zillow home values accurate? There seems to be gross differences in the Zillow values of like homes in similar locations. How does Zillow determine home values?
Are Zillow home values accurate? There seems to be gross differences in the Zillow values of like homes in similar locations. How does Zillow determine home values?
You ask a very valid question which certainly isn't redundant. The weblink Jkgourmet attached gives Zillows 'glossy explanation' of what a Zestimate is. When Zillow claim it is a 'Starting Point' they fail to mention it is also an 'End Point' as no matter how inaccurate the Zestimate is Zillow will refuse ALL homeowner requests to correct or delete the erroneous valuation. What makes this so unacceptable is that out of 108 million Zestimates 17% are more than 25% inaccurate. That means that almost 20 million Zestimates are wrong by more than $50K, assuming an average home price of $200K.
What does Zillow hope to gain by refusing to correct flawed information on their website? Surely it is in their interest to improve the accuracy when errors are brought to their attention? Or, does Zillow have a deliberate strategy of being controversial where substantially inaccurate Zestimates generate more User attention than accurate information? After all Zillow does claim to be a Media Company rather than a housing company and they generate Revenues attracting Users to their website.
As they have failed to operate in a socially responsible manner it is time Zillow was subject to some form of regulation to protect homeowners from their nonsense Zestimates; that would be no different than Utility companies being regulated to protect consumers from tariff abuse, or the SEC protecting investors from Insider trading, the FAA protecting air travellers from airlines short cutting on safety, etc. At the very least there should be a DoNotZestimate option to let homeowners opt out of Zillows BS Zestimates.
You ask a very valid question which certainly isn't redundant. The weblink Jkgourmet attached gives Zillows 'glossy explanation' of what a Zestimate is. When Zillow claim it is a 'Starting Point' they fail to mention it is also an 'End Point' as no matter how inaccurate the Zestimate is Zillow will refuse ALL homeowner requests to correct or delete the erroneous valuation. What makes this so unacceptable is that out of 108 million Zestimates 17% are more than 25% inaccurate. That means that almost 20 million Zestimates are wrong by more than $50K, assuming an average home price of $200K.
What does Zillow hope to gain by refusing to correct flawed information on their website? Surely it is in their interest to improve the accuracy when errors are brought to their attention? Or, does Zillow have a deliberate strategy of being controversial where substantially inaccurate Zestimates generate more User attention than accurate information? After all Zillow does claim to be a Media Company rather than a housing company and they generate Revenues attracting Users to their website.
Simple answer: Zillow would have to add an entire department of employees to deal with it. I don't think there is any value for Zillow in being accurate. Added salaries and benefits = lower profits.
Quote:
Originally Posted by Surbiton
As they have failed to operate in a socially responsible manner it is time Zillow was subject to some form of regulation to protect homeowners from their nonsense Zestimates; that would be no different than Utility companies being regulated to protect consumers from tariff abuse, or the SEC protecting investors from Insider trading, the FAA protecting air travellers from airlines short cutting on safety, etc. At the very least there should be a DoNotZestimate option to let homeowners opt out of Zillows BS Zestimates.
While I'm not a fan of Zillow, I don't see how a homeowner is damaged by Zestimates. We have enough government regulations, thank you. (If you want to add one, let's start by making the Senators and Congressmen obey the insider trading rules. THAT'S one I could get behind.)
What does Zillow hope to gain by refusing to correct flawed information on their website?
They hope to gain a defense from all the people out there that would sue them for paying too much for a house based on the Zestimate or someone that feels they are not going to be able to sell their house for as much because of it. If the Zestimate is based on a "dumb" formula, that doesn't involve humans, and they clearly disclose that fact, it protects them from litigation nuts like certain posters on CD.
Quote:
Originally Posted by Surbiton
As they have failed to operate in a socially responsible manner it is time Zillow was subject to some form of regulation to protect homeowners from their nonsense Zestimates; that would be no different than Utility companies being regulated to protect consumers from tariff abuse, or the SEC protecting investors from Insider trading, the FAA protecting air travellers from airlines short cutting on safety, etc. At the very least there should be a DoNotZestimate option to let homeowners opt out of Zillows BS Zestimates.
It would be immeasurably different than regulating utility companies' tariffs and insider trading, to a degree that amazes me that I need to explain it. Zillow is not profiting from the information. It isn't like they are low balling the Zestimate and then buying the house. They simply provide a very simple estimate, based on very simple information.
Here's an interesting article that appeared in our local Sarasota, FL paper. The examples used are expensive properties but, when you consider the amount of money represented by just the differences in values, it should give one pause before relying on an online valuation tool. Remember, a broken clock is right twice a day. Sure, Zillow and the others might get it right once in a while but that is not the measure that counts. It is being able to get it right every time within an acceptable range. Look at it this way...is your property the one that is right or the one that is off by 20% or more?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
