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 288   next

18201 Town Harbour Road -- 5 BR, 5.3 BA
Price: $4,950,000 (8834 sqft)
Subdivision: The Peninsula
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Meredyth Holdenrid | MLS # 4116658 | Active
118 Hadley Harbor Court -- 5 BR, 5.1 BA
Price: $4,790,000 (7456 sqft)
Subdivision: The Point
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Clarke Crawford | MLS # 4120597 | Active
14515 NC Hwy 73 Highway -- 4 BR, 4.1 BA
Price: $4,500,000 (5714 sqft)
Subdivision: Vista Lago
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Kathy Day | MLS # 4085004 | Active
139 Hollen Lane -- 10 BR, 11.7 BA
Price: $22,000,000 (9870 sqft)
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Hart Real Estate | MLS # 4096193 | Active
14051 Island Drive -- 5 BR, 6.2 BA
Price: $18,000,000 (12636 sqft)
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Premier Sotheby's | MLS # 4020713 | Active
18019 Harbor Light Boulevard -- 6 BR, 7.4 BA
Price: $16,000,000 (15048 sqft)
Subdivision: The Peninsula
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Premier Sotheby's | MLS # 3895525 | Active
154 Tennessee Circle -- 6 BR, 7.2 BA
Price: $12,500,000 (11112 sqft)
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The Agency - Charlotte | MLS # 4099910 | Active
173 Rehoboth Lane -- 5 BR, 5.3 BA
Price: $10,000,000 (8750 sqft)
Subdivision: The Point
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Keller Williams Lake | MLS # 4087619 | Active
18000 Whispering Oaks Drive -- 5 BR, 6.3 BA
Price: $8,000,000 (7308 sqft)
Subdivision: Point Largo
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Nestlewood Realty, LLC | MLS # 4002519 | Active
132 Lightship Drive -- 4 BR, 4.2 BA
Price: $7,995,000 (9794 sqft)
Subdivision: The Point
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Ideal Realty inc | MLS # 4097424 | Active
17807 Largo Place -- 4 BR, 5.1 BA
Price: $7,895,000 (7176 sqft)
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Re/MaxDiamond Realty | MLS # 4123359 | Active
19419 Tresia Lane -- 7 BR, 6.2 BA
Price: $6,950,000 (6932 sqft)
Subdivision: Diane Shores
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Premier Sotheby's | MLS # 4064518 | Active
4516 Slanting Bridge Road -- 3 BR, 2 BA
Price: $6,885,000 (1494 sqft)
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RE/MAX Executive | MLS # 4073500 | Active
22350 Country Club Lane -- 6 BR, 6.1 BA
Price: $6,750,000 (6460 sqft)
Subdivision: Country Club Shores
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Helen Adams Realty | MLS # 4097389 | Active
8397 Ranger Island Marina Road -- 7 BR, 7.2 BA
Price: $6,500,000 (7071 sqft)
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Nestlewood Realty, LLC | MLS # 4007345 | Active
166 Iron Gate Circle -- 5 BR, 6.1 BA
Price: $6,500,000 (4879 sqft)
Subdivision: The Cove
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Trump International | MLS # 4111645 | Active
20114 Norman Colony Road -- 6 BR, 6.1 BA
Price: $4,499,000 (7003 sqft)
Subdivision: Norman Colony
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Carlyle Properties | MLS # 4073063 | Active
186 Atlantic Way -- 4 BR, 4.1 BA
Price: $4,295,000 (6319 sqft)
Subdivision: The Point
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Premier Sotheby's | MLS # 4120111 | Active
19819 Stough Farm Road -- 5 BR, 6.1 BA
Price: $4,275,000 (5702 sqft)
Subdivision: Patricks Purchase
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Ivester Jackson | MLS # 4119593 | Active
2585 Brawley School Road -- 4 BR, 5.1 BA
Price: $4,250,000 (9020 sqft)
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Ivester Jackson | MLS # 4125723 | Active

Listings 1 - 20 of 288   next

Lake Norman Waterfront Condos for Sale

Lake Norman condos

Listings 1 - 20 of 63   next

18837 Vineyard Point Lane -- 2 BR, 2 BA
Price: $429,000 (864 sqft)
Complex: Dockside
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Paul Yancey | MLS # 4124392 | Active
745 Hazel Way -- 3 BR, 2.1 BA
Price: $360,000 (1927 sqft)
Subdivision: Rivercross
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Brigitte Perry | MLS # 4121030 | Active
19329 Watermark Drive -- 3 BR, 3.1 BA
Price: $1,689,000 (2838 sqft)
Complex: Watermark
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Ivester Jackson | MLS # 4124713 | Active
19329 Watermark Drive -- 3 BR, 3.1 BA
Price: $1,559,000 (2864 sqft)
Complex: Watermark
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Premier Sotheby's | MLS # 4112266 | Active
18641 Harborside Drive -- 3 BR, 2 BA
Price: $849,000 (1375 sqft)
Complex: Villages at Harborside
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K.M.D. Realty Inc. | MLS # 4092221 | Active
18595 Vineyard Point Lane -- 3 BR, 2 BA
Price: $799,900 (1272 sqft)
Complex: The Moorings
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EXP Realty LLC | MLS # 4125117 | Active
18529 Harborside Drive -- 3 BR, 2 BA
Price: $799,000 (1375 sqft)
Subdivision: Harborside
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K.M.D. Realty Inc. | MLS # 4085672 | Active
7425 Mariner Cove Drive -- 2 BR, 2.1 BA
Price: $689,900 (1559 sqft)
Subdivision: Mariner Villas
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Keller Williams | MLS # 4126858 | Active
18563 Vineyard Point Lane -- 3 BR, 2 BA
Price: $650,000 (1252 sqft)
Complex: The Moorings
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EXP Realty LLC | MLS # 4129254 | Active
7827 Village Harbor Drive -- 2 BR, 2 BA
Price: $629,000 (1087 sqft)
Complex: Villages at Harborside
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Lake Norman Realty, | MLS # 4130009 | Active
637 Williamson Road -- 3 BR, 2 BA
Price: $599,000 (1610 sqft)
Subdivision: Harbor Point Village
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Vessel Realty | MLS # 4127586 | Active
8225 Houser Street -- 3 BR, 2.1 BA
Price: $589,900 (1928 sqft)
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Beycome Brokerage | MLS # 4128561 | Active
20027 N Cove Road -- 3 BR, 2.1 BA
Price: $549,900 (1916 sqft)
Subdivision: St Philip Square
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EXP Realty LLC | MLS # 4127076 | Active
1106 Torrence Circle -- 2 BR, 2 BA
Price: $535,000 (1109 sqft)
Complex: Captains Watch
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ERA Live Moore | MLS # 4082808 | Active
4347 Reed Creek Drive -- 4 BR, 4 BA
Price: $488,000 (2672 sqft)
Subdivision: Waterstone
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Keller Williams South | MLS # 4123709 | Active
4343 Reed Creek Drive -- 4 BR, 4 BA
Price: $484,000 (2672 sqft)
Subdivision: Waterstone
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Keller Williams South | MLS # 4123724 | Active
4339 Reed Creek Drive -- 4 BR, 3.1 BA
Price: $482,000 (2672 sqft)
Subdivision: Waterstone
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CCNC Realty Group LLC | MLS # 4126316 | Active
4311 Reed Creek Drive -- 4 BR, 3.1 BA
Price: $480,000 (2672 sqft)
Subdivision: Waterstone
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CCNC Realty Group LLC | MLS # 4067706 | Active
20555 Harbor View Drive -- 3 BR, 3.1 BA
Price: $479,000 (2471 sqft)
Subdivision: Lake Norman Cove at Jetton
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CREB Inc | MLS # 4119520 | Active
4322 Reed Creek Drive -- 4 BR, 4 BA
Price: $465,000 (2154 sqft)
Subdivision: Waterstone
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Keller Williams South | MLS # 4123670 | Active

Listings 1 - 20 of 63   next