Peninsula Living Blog

Thanks for the post. I will bookmark and show it to buyers .

Fun indeed, as is Redfin, but the prices are just estimates.  You need the eyes and ears of an experienced realtor to tell the real story.

The over/under on Rainers who will leave negative comments about Zillow is 72. Let the onslaught begin.

Actually, Zillow is very candid about their ZESTIMATE. After all, they have a database of almost 90% of the homes in US. It is expected that there is always some margin of error.

And, this could have been negative, too.

Hi Lottie, congrats on the feature, there are the good sides of Zillow, the benefits of their marketing material for agents, then there are the bad, the zestimates...just as long as the consumer is aware they are off. 

Hi, Lottie

Came over from Praful's re-blog.

I was going to do a blog about three duplexes in the same vicinity --- and how the zestimates were all over the place. One duplex had extensive remodeling and upgrades plus driveways and a 2-car garage but it was zestimated at nearly the same price as another duplex that needed work, on a smaller lot and had no off-street parking. A third duplex was on a much larger lot, also in excellent shape, but it was zestimated lower than the other two.

You're right. Zillow is a fun site, lots of good information....but should not be used as THE resource when doing CMAs.

Zillow is a fun way to "spy on your neighbors" as far as pricing, but always read the Zillow disclaimer about Zestimates - it's often 20% off - in either direction!

Everybody in the business has known for years that Zillow is a joke and I suppose eventually that knowledge will filter out to the general public.  I just saw though, that Realtor.com is doing zestimates or whatever they call it and that is something that should stop immediately.  It's much easier for us to debunk a company that is run by a bunch of techie nerds who never sold a house than a company that uses our trademark name.  I would hope that NAR's contract with Realtor.com would allow them to stop this practice.  We all know that NAR has become pretty useless in it's old age but at least it should do no harm. 

Lottie, create post. I will bookmark this blog and use it for my clients.

 

Lottie, I just had this conversation with a client this week.  I can buy my dream house for $4K.  I found it on Zillow.  Really?  Is in an otherwise deserted island?  I've moved them to my IDX site for up to date prices and listings. 

I like the terminology that Zillow is the Zesstimate and the agent is the Zactimate. Go with agent.

Zillow zested my home at a half dozen values in the last year ranging from $106k to $500K.  I do believe that they have identified the range, but what good is that?

Just went back and reblogged with this addition. Zillow can be fun and a good resource to check. But just like this post describes, trust your local agent to price the home because there is a large margin of error that needs to be fine tuned by your local Realtor Specialist. A little off can be a lot off when you look at the example below.

Real estate is local and Zillow, while a good resource, is not a local Realtor®!

The problem is that if consumers take the word of what they see off what's on Zillow and then don't take the step to consult an agent. Zillow should be viewed as a tool - information that supplements the well researched information an agent can provide.

Taro cards, horoscopes and seances can be used to supplement Zillow.

Lottie, people see what they want to see and the disclaimer isn't one of them. The information is misleading and shouldn't be relied on for any factual information.

I never liked Zillow. But, after our National Association copied the concept and called it RPR (replace professional realtors), I now think pretty highly of the Zestimate and their company. Don't forget to send the NAR $40 more so they can better represent us in Washington (not).

However, your review of the difference between actual and estimated value is well written. Congratulations on the well deserved featured post.

Zillow is such a huge waste of time in our area, it's a joke.  I've had properties in Los Altos where Zillow valued then in the $1.3M range and they sold or were worth $1.8M.  The listing I have in Los Altos Hills has a Zestimate of $2.1M and the list price is $14.5M.  Ugh!

Right on with this post.  I get several calls or emails a month from folks snapping off Zillow Values.  In my farm area, I specifically offer "REAL" home valuations for free at least once a quarter as well as send current market data.  Zillow is fun, but the numbers are a very loose ballpark at best.

Great post and I reblogged it.   I find that it is typically 10% off either way for a total of 20% - but 20% off in one direction - YIKES!!! They still have a lot of work to do.

In our area Zillow usually overprices the homes. So when sellers come in with their overpriced zestimates, it is even more difficult.

Most of the time Zillow doesn't even come CLOSE to reality.  I like your reminder that a qualified   REALTOR®  is the best way to go!

If you look at the details, Zillow statistics are based on some fairly broad underlying assumptions.  The Zestimate is good for getting a general idea about relative values in a neighborhood.  In NC, an appraisal or Comparative Market Analysis is best for getting probable list prices.

People do enjoying looking at Zillow info - but when they get serious about buying a home, an experienced local real estate agent can sure shrink that margin for error - a bunch!

 

 

What was your/or the Agents CMA estimate on that Property..Wonder what % differance we'd see there?

In fact it'd be intersting to see that on all or 100 million Properties (as you do at the mentioned site) to verify the claim an experienced local real estate agent can sure shrink that margin for error..

 

 

 

Zillow and similar internet sites are only starting points. Having the Zillow discussion with prospective clients allows real estate professionals to show how they add value. Yeah…adding value…what so many folks forget about when they question the need for Realtors.

Lottie - This is a discussion so many of us have had with both buyers and sellers.  I usually show them the estimates Zillow has for their accuracy rates.

I love Zillow.  Not their Zestimates or their dead properties (aka, sold or expireds that tease would be buyers) but I have met so many high quality wonderful clients through that website.  And the Zestimates being off are always a great conversation piece with clients.  So I say, keep doing what you are doing Zillow!  Just making us look better.

Lottie,  I asked a underwriter last week if they get their desktop underwriting estimates from Zillow? The reason I asked is because the estimate for the property was $330,000.  The actual appraisal came back at $220,000.  Now that's not even close! Congrats on the Feature!

Lottie:

I love to peruse Zillow.  I even check homes I may be listing in the future.  They are seldom accurate.  But sometime they are very close.  Just depends.  I caution people to look at Zillow, but call me for an accurate price to list their homes.

And it the estimate had shown over a million would she have been so quick to point that out to you one must wonder  - right ? all the best.

Who ever came up with the name Zestimates anyway? We keep telling local home buyers and sellers not to rely on Zestimates. But do they ever listen to us? I think we all know the answer to that one. Great post Lottie.

I have the same conversations with buyers before they make an offer on a home.

Zillow claims to be within 20% of the price 85.4% of the time for homes in San Mateo county, and within 5% of the price 37.7% of the time for that same county.

Check out their statistics site - I think you'll find this helpful.  

http://www.zillow.com/howto/DataCoverageZestimateAccuracyCA.htm

Another fun question to ask clients is: "Does Zestimate sound like an exact appraissal or some random computer generated number?"

Zillow should be for entertainment purposes only.  As said in several previous comments, only an agent, experienced in the area can give an accurate valuation

The problem with Zillow is that the public doesnt understand it should be used for "entertainment purposes only". They think it is a real estate industry website, not a big joke.

Zillow is the worst real estate website on the world wide web. I steer my clients and the public away from it as much as I can. That website is a perfect example of GARBAGE IN = GARBAGE OUT. they should have named it www.gigo.com The data that they use is inaccurate and incorrect, (where do they even get it?) so therefore their results and "zestimates" (is that even a real word?) are inaccurate and incorrect. 10%, 20%, 30% or more. Is a "zestimate" ever going to replace a BPO? or a CMA? or an appraisal?

That site is a JOKE. Use it for fun just like jib-jab. I cant tell you how many listing appointments that I have been on where the seller has a preconceived notion of the market value of their home from zillow...and it's not even close. Or the buyer wants to write a low offer because "we checked out zillow and the seller is way overpriced". zillow? REALLY?.

Why dont they say "we asked our dog and he told us what the house is worth"?

Why doesnt the public know how worthless this website really is? Why do they take it as gospel?

In addition, the forum section of the website is a disaster that's has already happened. Lets face it folks, the bar is set so low in our industry you could barely trip over it, and the "advice" that some of our "peers" are giving to the public is not only scary but it is almost criminally negligent in many cases. DO NOT GIVE LEGAL ADVICE UNLESS YOU ARE AN ATTORNEY. Also ~ do not give advice on situations in other states that you are not licensed to practice real estate in. Also ~ do not give bad, idiotic, or stupid advice. REALLY!

For a while i used to rant and rave and get upset anytime zillow was brought up, but now I just laugh....really loudly and for a long time when anyone mentions it..... Like the time that I went down to my bank, "zestimate" clutched firmly in my hand, and waited in line to talk to the senior mortgage officer of the bank. I proudly presented him my zestimate and demanded a cash-out refi loan on my house, guess what happened......... HA HA HA HA HA HA HA. :-)

It is important that buyers and sellers alike understand that Zillow cannot be used to determine an accurate value.  There are so many criteria that go into an appraisal valuation that a site like Zillow cant possibly take it all into account.

Gosh you're so nice about this horrible problem. What's the difference between a Zillow price & rolling the dice in your basement? Nothing - it's a party game to them & they're playing with your homes value!  If people would just figure out you are nothing but a computer algorithm to them to generate leads.  Leads to sell back to Realtors!

Reuben #37 - you must be satisfied with the Zillow estimate of your home or you wouldn't be throwing around all those fancy stats.  When they underestimate your home while it's on the market, let me know how happy you will be ;-).

Don't forget your magic 8 ball!

Zillow is typically a poor source of valuation information.

It is clear that Zillow cannot be very accurate with the data that they now have. And it seems that the only way for that website to be consistantly close to actual values is to have someone in the field who does what agents do... go have a look and do some investigating.

I think all of us have heard the Zillow argument. If I prepare a comprehensive CMA and explain it thoroughly, they pretty quickly come around.

What is so fun about Zillow, anyway??? They are so wrong that I can't find any reason to even go on the site---I have to constantly tell my buyers that the Zillow site is wrong--yet they persist---the straw that broke the camels back was when Zillow sent me an urgent message telling me my very own home was losing equity (It was not on the market for sale but for rent!) They used the rental price and told me my home had lost 20% in value over the past 6 months and that I  needed to adjust my price!!! they are opportunistic at best and dangerous at the very least!

Hi Lottie - Brad from Zillow here.  Thanks for posting this and helping us to get the message out that Zillow is a great starting point to gather information and data and even get a zestimate but the local agents and appraisers are the best way to get a "zactimate!"  Much like WebMD, you can find some really valuable stuff just like at Zillow, but it's the local Doctor / Agent that can help consumers get the closest to market value for their real property. 

Congrats on your feature, I hope others will take advantage of your experience and knowledge on how to work with clients, data, and their local real estate by using some of the tools and information we can provide for FREE.  Here's a link to the zestimate details and video for those who may need additional help.

You can also visit Zillow Academy dot com anytime if you ever want or need more support and training. Everyone is welcomed and it's all complimentary.  :-)

 

Zillow is a dangerous website.  Unknowing consumers believe this is "real information" and believe they are seriously underwater, with no relief in sight.   I have prevented homeowners from walking away from their homes based on the "facts" presented by Zillow.   This site grossly misrepresents actual property values with misleading data "zestimates"   

If you want to know the value of your home, PLEASE contact a realtor.   There is no fee for our Market Analysis and you will get a thorough evaluation of your home. 

 

 

Not only am I bookmakring but reblogging.  Go Lottie!!  And, I love Jason's rant!  I'm mentall filing away www.GIGO.com or just ask your dog!  LOL

I tell my clients, whether buyers or sellers, that it's just a computer doing math based on what a software programmer told it is the way to do the math. "The computer has not been in the home" is usually my comment that brings reality to zestimates.

Lyn #37 - been there.  I sold my home about a year ago, and the 'Zestimate' was about 20% less than what I sold it for.  I knew it would be, because I had made a lot of improvements to my house that Zillow couldn't possibly take in to account.

Those stats that I quoted came from the Zillow web site, and I think they're important because they make the accuracy (or 'inaccuracy') of the 'Zestimates' transparent.  The next time you have a client who wants to quote numbers off Zillow, point 'em to Zillow's own accuracy page to help put things in to perspective.  

Reuben - some folks don't know that the Zestimate® Values & Accuracy chart exists and that it can be searched and used by Top Metro areas, States and Counties, or Nationally.  It's a great transparent tool and can also be printed or exported into excel to be used with clients and for presentations etc.

Go to the bottom of any Zillow page and click on the "about Zestimates" link and then use that data to show your clients how much variance Zillow allows on their prices.

I whole heartedly agree with Brad #48. When it comes to evaluating homes, Zillow is down right dangerous. It does more damage than good with its "Zestimates". Bad information is always worse than no information.

I've seen so many incorrect things on Zillow, I believe Real Estate is local and a Realtor is the best source for information on real estate. Thanks for the post and sparking this great dialogue.

 

I have been looking at Zillow and in most cases, the prices that Zillow suggests are quite a bit lower than listed price.

Also, they show my daughter's property value at about 40.000 less than what she paid for it 2 years ago. Only 2 years ago, we were in this down market already; it has not continually decreased, so I can't believe that Zillows suggestion is completely accurate.  It is good though to at least have a point of reference.

Peggy - you hit the nail on the head -- consider Zillow as a point of reference and educate your buyers and sellers on the site's capabilities and limitations.

so true about Zillow!!!  I have a property that is conservatively worth $1.2M and Zillow consistently indicates that the Zestimate is $421K...which happens to be the tax assessment

So true. We are a non disclosure state here in Idaho so public records are NOT complete and we constantly have to explain this to buyers who use zillow.  Actually, in my neighborhood some of the zestimates are too high! -Kasey

Great read:)  This is WAY too true lol! It's becoming almost a daily occurence that a buyer mentions Zillow values and gauges their opinions on it.  I wish there was an easier way to help them understand the lack of diligence or research put into these values.

Great post Lottie. Zillow is a good site for most everything BUT the zestimate. It is completely meaningless and the reason is because they do not share HOW they arrive at the number. How can a consumer or an agent view the zestimate as credible for this reason alone.

Great post Lottie. Zillow is a good site for most everything BUT the zestimate. It is completely meaningless and the reason is because they do not share HOW they arrive at the number. How can a consumer or an agent view the zestimate as credible for this reason alone. Sorry I forgot to sign in for post 62.

I think Zillow is causing big probllems and may actually cause problems going into an up market.

Hello everyone. Wow--seems like the vast majority of us have had clients asking us about Zillow! The purpose of my post isn't to bash Zillow, but to address the conversations we need to have with our clients about the Zestimates. I find when I use anecdotal examples, from our local market, it helps buyers and sellers the most.

Brad, thanks for stopping by, and for reading my post about Zillow. In addition to my own experience, I like your analogy to WebMD. That, in addition to my anecdotal experiences and your zestimate stats should help buyers and sellers quickly understand Zillow can be a starting point, but doesn't replace advice from a local real estate practitioner.

Best to you,