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Just wondering what people's experiences here were with the Zillow "zestimate."
I've heard some people say it's worthless.
For my property, it was was about 5% higher than the sale price. It did a bunch of weird things once the listing attracted activity, jumping all over the place & settling on a somewhat higher than expected number. The sale price was pretty accurate to what Zillow said about 2-3 months prior to listing.
I have to say, it was more accurate than my agent's initial pricing, which was about 7% too high.
The sale price (market value) is determined by many different factors, not all of which can be captured in a one-size-fits-all Zillow estimate. Stil, Zillow estimates offer a wide range of advantages, (some similar to real-time comps), but, should not be used as the 'final authority' in setting a sales price or selling a property.
Frankly, if a Zillow estimate is 5-percent higher than what you actually sold the property for, it's served it's intended purpose. Most would rather list their property +/- 5-percent high to leave room for some inevitable buyer negotiation. Likewise, if a buyer wants to buy a property, but, thinks it may be listed 5-percent above the market (or Zillow estimate), they will likely reflect that in their offer. In a hot market where there are multiple offers, neither the Zillow estimate or the asking price are the deciding factor in what the buyer is willing to pay.
The sale price (market value) is determined by many different factors, not all of which can be captured in a one-size-fits-all Zillow estimate. Stil, Zillow estimates offer a wide range of advantages, (some similar to real-time comps), but, should not be used as the 'final authority' in setting a sales price or selling a property.
can you share these advantages that the Zestimate has?
at least on a Redfin automated value, they tell you the comparable homes that sold that fit into their algorithm.
In my case it wasn't even close. And, you heard right. Also their tax estimates are way off. My property tax was $990/yr. Their estimate was $120/mo.
If they do a tax estimate at all it would be based on their estimated sales price value. Probably more then your county shows as a value. My tax history is right-pulled from county records I believe.
My townhome was built in 1972 and the county shows it at 812 sqft because it is a split level with the common area below grade. Yes the county still assess' it same value as neighboring house. The Zillow estimate is optomistic IMHO. There are 5 properties in the association for sales that are also over 100 DOM and overpriced. And that overpriced value is on the real estate agent not zillow.
Location: Sarasota/ Bradenton - University Pkwy area
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As an agent, I always take a look at the zestimate for homes when taking a new listing or working with buyers interested in specific homes as customers frequently will quote the zestimates to me.
I've found that the zestimates are closest to actual market values when the surrounding homes are all similar in size and price.
If the next door neighborhood is a lower or higher neighborhood than the subject home, it skews things.
If the subject home has more or less features than neighboring sold homes, it skews things.
Foreclosures and fixer uppers skew things.
Back when I sold my previous home, it was located within a neighborhood going through a lot of short sales and foreclosures at the time. The zestimate undervalued my home by approximately 25%.
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