Stop the presses! My Zillow estimate increased 0.6% (Laurel: sales, house prices)

[Messing About]

LMAO!
Okay, so it's the first actual increase I've seen since I signed up for their alerts a year or two ago. I actually think their Zesitmates are a JOKE because, according to them, my Gulf access home is worth $86,200. Now I know I've lost some value since buying it in 2008 for what the sellers paid in 2003 but there's no way my home is worth less than non-waterfront in my Murdock neighborhood. Some are showing $150k. I paid 199 in April '08 and my sales appraisal was $235.

I don't really care because I'm not looking to sell but I am thinking of re-fying to a 15 year note and I'm concerned about the appraisal values. My next door neighbor, on the water also, re-fied last year.

He has a pool and about 700 more sq. ft than I but his appraisal came in at 209k.

Does anyone put any credibility in Zillow?

[TamRE]

You are right, Zillow estimates are not current or correct. I am not sure how they determine their figures, but they are never the same as doing an actual comparative market analysis.

[Harbor Hopper]

Very little credibility. And an appraiser won't use Zillow either.
BTW, I'm sure you've noticed that good 'ole Charlotte County has increased your value this year to get more tax $$$$. Of the 20 or so people I've asked, 100% say they've been increased this year. What a joke. I tried fighting mine with hard data AND an appraisal from December 2010 (when we re-fied to put in a pool) and they rejected my appeal!! How can they reject facts? Criminals are running this county. Ok, I'm done pouting now

[mrs.cool]

I have the Zillow email thing too. Our value jumps up and down nearly monthly. Crazy...

[Big House]

Yep, Zillow is pretty much worthless! With all the deals I do, I don't even bother looking at them. But since you do, and you're feeling good! You buy the beer!

[leetchy2]

In an absolute sense the Zillow values are useless. However, when used in a relative sense they are a useful predictive tool.

For instance, I took the last 12 months of actual sales prices in the Laurel Oak subdivision along with the zillow estimated value prior to the sale. The correlation between the two was actually very high (81%) even though the raw Zillow values consistently overestimated home values in this community. Once the bias was eliminated through the regression correlation, the corrected Zillow values are a useful tool ... at least for Laurel Oak. Other subdivisions may not observe that good a correlation.

For a comparison, I also correlated the 2010 tax assessed values with the actual sales prices. The correlation was only 55%, so tax assessed values are poor measures of home value even after biases are removed.

[macyny]

House prices fluctuate on Zillow according to sold comps. If a few houses sell below market value, your house estimate drops. If a house nearby sells high, your estimate goes up. It is based on sold comps. to your house. It helps you get an idea of your local market.

We sold our house over a year ago in NY and we still get Zillow alerts which go up and down depending on what sells. It gives you a 'ball park' figure of your area. I have seen my old house steadily increase in value. The exact price is wrong, but it helps to see the local housing market rise.

[Rushmore]

Zillow should be forced to clearly mark their site:

FOR ENTERTAINMENT PURPOSES ONLY.

Each of the homes I own have been off by six figures at one point or another.

[macyny]

They are not for 'entertainment only.' They are based on real #'s on sold properties. The figure doesn't account for updates, etc. Its up to the user to enter info on their house. It is helpful in a general way. Gives you a idea of the local market.

[gettinoutofjersey]

zillow is BS. its good for a laugh.