Zestimates-Wrong-Inaccurate

Zestimates – Why They are Not Helpful

Why a Home Buyer should never use them

What is a Zestimate?

Zestimate

(Pronounced ZEST-ti-met) – Information is straight from the Zillow Website

The Zestimate® home value is Zillow’s estimated market value for an individual home and is calculated for about 100 million homes nationwide. It is a starting point in determining a home’s value and is not an official appraisal. The Zestimates are automatically computed daily based on millions of public and user-submitted data points.

Zestimates® home valuation is Zillow’s estimated market value, computed using a proprietary formula. It is not an appraisal. It is a starting point in determining a home’s value. The Zestimate is calculated from public and user-submitted data, taking into account special features, location, and market conditions. We encourage buyers, sellers, and homeowners to supplement Zillow’s information by doing other research such as:

  • Getting a comparative market analysis (CMA) from a real estate agent
  • Getting an appraisal from a professional appraiser
  • Visiting the house (whenever possible)

Zillow also produces a Zestimate forecast, which is Zillow’s prediction of a home’s Zestimate one year from now, based on current home and market information. Learn more about the Zestimate forecast.

*For more information on Zestimates directly from Zillow, Click HERE

From: the Los Angeles Times
By: Kenneth R. Harney
Date: February 2015

When “CBS This Morning” co-host Norah O’Donnell asked the chief executive of Zillow recently about the accuracy of the website’s automated property value estimates — known as Zestimates — she touched on one of the most sensitive perception gaps in American real estate.

Zillow is the most popular online real estate information site, with 73 million unique visitors in December. Along with active listings of properties for sale, it also provides information on houses that are not on the market. You can enter the address or general location in a database of millions of homes and probably pull up key information — square footage, lot size, number of bedrooms and baths, photos, taxes — plus a Zestimate.

Shoppers, Sellers and Home Buyers routinely quote Zestimates to realty agents — and to one another — as gauges of market value. If a house for sale has a Zestimate of $350,000, a buyer might challenge the sellers’ list price of $425,000. Or a seller might demand to know from potential listing brokers why they say a property should sell for just $595,000 when Zillow has it at $685,000.

Disparities like these are daily occurrences and, in the words of one realty agent who posted on the industry blog ActiveRain, they are “the bane of my existence.” Consumers often take Zestimates “as gospel,” said Tim Freund, an agent with Dilbeck Real Estate in Westlake Village. If either the buyer or the seller won’t budge off Zillow’s estimated value, he told me, “that will kill a deal.”

Back to the question posed by O’Donnell: Are Zestimates accurate? And if they’re off the mark, how far off? Zillow CEO Spencer Rascoff answered that they’re “a good starting point” but that nationwide Zestimates have a “median error rate” of about 8%.

Whoa. That sounds high. On a $500,000 house, that would be a $40,000 disparity — a lot of money on the table — and could create problems. But here’s something Rascoff was not asked about: Localized median error rates on Zestimates sometimes far exceed the national median, which raises the odds that sellers and buyers will have conflicts over pricing. Though it’s not prominently featured on the website, at the bottom of Zillow’s home page in small type is the word “Zestimates.” This section provides helpful background information along with valuation error rates by state and county — some of which are stunners.

For example, in New York County — Manhattan — the median valuation error rate is 19.9%. In Brooklyn, it’s 12.9%. In Somerset County, Md., the rate is an astounding 42%. In some rural counties in California, error rates range as high as 26%. In San Francisco it’s 11.6%. With a median home value of $1,000,800 in San Francisco, according to Zillow estimates as of December, a median error rate at this level translates into a price disparity of $116,093.

Some real estate agents have done their own studies of accuracy levels of Zillow in their local markets.

Last July, Robert Earl, an agent with Choice Homes Team in the Charlottesville, Va., area, examined selling prices and Zestimates of all 21 homes sold that month in the nearby community of Lake Monticello. On 17 sales Zillow overestimated values, including two houses that sold for 61% below the Zestimate.

In Carlsbad, Calif., Jeff Dowler, an agent with Solutions Real Estate, did a similar analysis on sales in two ZIP Codes. He found that Zestimates came in below the selling price 70% of the time, with disparities ranging as high as $70,000. In 25% of the sales, Zestimates were higher than the contract price. In 95% of the cases, he said, “Zestimates were wrong. That does not inspire a lot of confidence, at least not for me.” In a second ZIP Code, Dowler found that 100% of Zestimates were inaccurate and that disparities were as large as $190,000.

So what do you do now that you’ve got the scoop on Zestimate accuracy? Most important, take Rascoff’s advice: Look at them as no more than starting points in pricing discussions with the real authorities on local real estate values — Experienced Agents and Appraisers.

Zestimates are hardly gospel — often far from it.

Call the Martin Real Estate Team of Lake Norman if you are interesting in Buying or Listing Your Home in the Cornelius, NC Real Estate area or other around Lake Norman…or even if you are looking for more information on Lake Norman Real Estate Values.

704-900-1619

Lake Norman Waterfront Homes for Sale

Lake Norman homes

Listings 1 - 20 of 233   next

2093 Brawley School Road -- 5 BR, 5.2 BA
Price: $3,499,999 (7654 sqft)
Subdivision: The Point
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Teresa Carson | MLS # 3872203 | Active
167 Queens Cove Road -- 5 BR, 8.1 BA
Price: $2,475,000 (8785 sqft)
Subdivision: Queens Cove
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Michael Toste | MLS # 3855826 | Active
9543 Island Point Road -- 3 BR, 3.1 BA
Price: $1,550,000 (3520 sqft)
Subdivision: Stutts Circle
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Beth Graichen | MLS # 3824681 | Active
19716 Old Lyme Court -- 4 BR, 2.1 BA
Price: $599,000 (2342 sqft)
Subdivision: Jetton Cove
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Paul Yancey | MLS # 3874677 | Active
2518 Wellesbourne Lane -- 4 BR, 3 BA
Price: $598,000 (2287 sqft)
Subdivision: Lakepointe North
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Lynn Stallings | MLS # 3875986 | Active
131 Middleton Place -- 4 BR, 4 BA
Price: $550,000 (3864 sqft)
Subdivision: Morrison Plantation
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Gerri Lynn Kemper | MLS # 3859251 | Active
155 Wiltshire Road -- 3 BR, 2 BA
Price: $410,000 (1478 sqft)
Subdivision: Wiltshire Creek
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Cynthia Team | MLS # 3854702 | Active
125 Quiet Waters Drive -- 5 BR, 6.3 BA
Price: $6,995,000 (8834 sqft)
Subdivision: Northwood
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Corcoran HM Properties | MLS # 3859517 | Active
153 Sleepy Cove Trail -- 4 BR, 5.1 BA
Price: $5,150,000 (6263 sqft)
Subdivision: Bay Crossing
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Titan Realty, Inc. | MLS # 3833947 | Active
2820 Camden Pointe Drive -- 4 BR, 4.1 BA
Price: $4,650,000 (4509 sqft)
Subdivision: Lakepointe South
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Lake Homes Realty LLC | MLS # 3857060 | Active
18121 John Connor Road -- 5 BR, 5.1 BA
Price: $4,499,000 (5403 sqft)
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Ivester Jackson | MLS # 3871330 | Active
20345 Enclave Oaks Court -- 6 BR, 6.1 BA
Price: $4,495,000 (7885 sqft)
Subdivision: Enclave
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Allen Tate Lake Norman | MLS # 3828131 | Active
19129 Serenity Point Lane -- 6 BR, 6.2 BA
Price: $4,450,000 (10435 sqft)
Subdivision: Joys Serenity Point
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Allen Tate Lake Norman | MLS # 3776981 | Active
18417 Peninsula Cove Lane -- 6 BR, 6.1 BA
Price: $4,395,000 (5440 sqft)
Subdivision: The Peninsula
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Allen Tate Lake Norman | MLS # 3864142 | Active
125 Pointe Harbour Lane -- 4 BR, 5.1 BA
Price: $4,199,000 (6510 sqft)
Subdivision: The Harbour at the Pointe
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Century 21 Lawrie | MLS # 3874862 | Active
17811 Largo Place -- 4 BR, 4.1 BA
Price: $4,149,000 (6455 sqft)
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OfferPad Brokerage LLC | MLS # 3747378 | Active
117 Vineyard Drive -- 4 BR, 5.1 BA
Price: $3,995,000 (6777 sqft)
Subdivision: The Point
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Trump International | MLS # 3859830 | Active
17429 Staysail Court -- 7 BR, 7.1 BA
Price: $3,895,000 (10458 sqft)
Subdivision: The Peninsula
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Premier Sotheby's | MLS # 3838731 | Active
20705 Bethel Church Road -- 4 BR, 4.2 BA
Price: $3,700,000 (5604 sqft)
Subdivision: Flagship
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Ivester Jackson | MLS # 3844373 | Active
16404 Pinwhenny Road -- 3 BR, 4.2 BA
Price: $3,695,000 (4317 sqft)
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Yates Realty Inc | MLS # 3874502 | Active

Listings 1 - 20 of 233   next

Lake Norman Waterfront Condos for Sale

Lake Norman condos

Listings 1 - 20 of 25   next

20008 North Cove Road -- 4 BR, 3.1 BA
Price: $629,000 (2518 sqft)
Complex: St Philip Square
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Debbie Ward | MLS # 3875374 | Active
20025 North Cove Road -- 3 BR, 2.1 BA
Price: $574,999 (1929 sqft)
Complex: St Philip Square
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Debbie Ward | MLS # 3873200 | Active
18525 Harborside Drive -- 3 BR, 2 BA
Price: $630,000 (1372 sqft)
Complex: Harborside
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Nagy Properties | MLS # 3868487 | Active
826 Southwest Drive -- 3 BR, 2 BA
Price: $589,900 (1170 sqft)
Complex: Stone Bluff
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EXP REALTY LLC | MLS # 3851221 | Active
163 Beacon Drive -- 3 BR, 2.1 BA
Price: $572,999 (1832 sqft)
Complex: Langtree At The Lake
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Clickit Realty | MLS # 3870205 | Active
1207 Torrence Circle -- 3 BR, 2 BA
Price: $524,900 (1365 sqft)
Complex: Newport
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Lake Realty powered | MLS # 3869968 | Active
18840 Nautical Drive -- 3 BR, 2 BA
Price: $465,000 (1275 sqft)
Complex: Admirals Quarters
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Mark Spain Real Estate | MLS # 3873384 | Active
1276 Brawley School Road -- 4 BR, 2.1 BA
Price: $432,577 (1917 sqft)
Complex: Forest Lake
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TRI Pointe Homes Inc | MLS # 3839619 | Active
19139 Juanita Lane -- 3 BR, 2.1 BA
Price: $429,900 (1857 sqft)
Complex: Lake Norman Cove at Jetton
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EXP REALTY LLC | MLS # 3872515 | Active
1276 Brawley School Road -- 4 BR, 2.1 BA
Price: $425,252 (1917 sqft)
Complex: Forest Lake
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TRI Pointe Homes Inc | MLS # 3838906 | Active
19532 Makayla Lane -- 2 BR, 2 BA
Price: $419,900 (2419 sqft)
Complex: Lake Norman Cove at Jetton
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OfferPad Brokerage LLC | MLS # 3870849 | Active
8284 Viewpoint Lane -- 3 BR, 2.1 BA
Price: $405,000 (2086 sqft)
Complex: Harborside
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Keller Williams | MLS # 3873081 | Active
9007 Rosalyn Glen Road -- 3 BR, 2 BA
Price: $400,000 (1826 sqft)
Complex: Edinburgh Square
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Puma & Associates | MLS # 3875904 | Active
1276 Brawley School Road -- 3 BR, 2.1 BA
Price: $394,790 (1810 sqft)
Complex: Forest Lake
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TRI Pointe Homes Inc | MLS # 3842165 | Active
4127 Steel Way -- 4 BR, 3 BA
Price: $394,695 (2570 sqft)
Complex: Blackstone
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DR Horton Inc | MLS # 3876344 | Active
4121 Steel Way -- 4 BR, 3 BA
Price: $394,695 (2570 sqft)
Complex: Blackstone
→ More info
DR Horton Inc | MLS # 3875773 | Active
1276 Brawley School Road -- 3 BR, 2.1 BA
Price: $393,128 (1810 sqft)
Complex: Forest Lake
→ More info
TRI Pointe Homes Inc | MLS # 3842163 | Active
4161 Steel Way -- 4 BR, 3 BA
Price: $392,695 (2570 sqft)
Complex: Blackstone
→ More info
DR Horton Inc | MLS # 3876387 | Active
19056 Natalie Michelle Lane -- 2 BR, 2.1 BA
Price: $385,000 (1835 sqft)
Complex: Lake Norman Cove at Jetton
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Century 21 Providence | MLS # 3865023 | Active
4123 Steel Way -- 4 BR, 3 BA
Price: $374,795 (2570 sqft)
Complex: Blackstone
→ More info
DR Horton Inc | MLS # 3876336 | Active

Listings 1 - 20 of 25   next