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 263   next

8217 Tranquil Harbor Lane -- 5 BR, 4.1 BA
Price: $1,150,000 (4911 sqft)
Subdivision: Tranquil Harbor
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Sandra Dunn | MLS # 3608694 | Active
123 Hunts Landing Drive -- 4 BR, 3.2 BA
Price: $994,506 (3784 sqft)
Subdivision: Hunts Landing
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Colleen Hunt | MLS # 3676582 | Active
109 E Maranta Road -- 4 BR, 4.1 BA
Price: $749,000 (4117 sqft)
Subdivision: Winslow Bay
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Dom DeMatteo | MLS # 3641774 | Active
225 Hermance Lane -- 4 BR, 4.1 BA
Price: $700,000 (3682 sqft)
Subdivision: Fishermans Cove
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Edward Steve Perri | MLS # 3643129 | Active
378 Kenway Loop -- 4 BR, 3.1 BA
Price: $650,000 (3820 sqft)
Subdivision: Woodleaf
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Edward Steve Perri | MLS # 3645053 | Active
196 Keats Road -- 4 BR, 4 BA
Price: $619,000 (3056 sqft)
Subdivision: Kelly Cove
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Jack Beckman | MLS # 3686273 | Active
129 Palmetto Drive -- 4 BR, 3.1 BA
Price: $589,900 (4200 sqft)
Subdivision: Stutts Cove
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Robin Kielar | MLS # 3668175 | Active
117 Castaway Trail -- 4 BR, 2.1 BA
Price: $579,900 (3619 sqft)
Subdivision: Waterside Landing
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Robin Kielar | MLS # 3675669 | Active
18745 Daymark Drive -- 3 BR, 3 BA
Price: $525,000 (2767 sqft)
Subdivision: The Courtyards at Jetton
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Doug Bean | MLS # 3650399 | Active
6176 Gold Springs Way -- 3 BR, 2 BA
Price: $415,000 (1956 sqft)
Subdivision: Westport
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Linda Singer | MLS # 3662078 | Active
137 Comata Road -- 4 BR, 2 BA
Price: $349,000 (2228 sqft)
Subdivision: Winslow Bay
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Rachel Payton | MLS # 3680421 | Active
2621 Eight Iron Drive -- 3 BR, 3.1 BA
Price: $280,000 (1974 sqft)
Subdivision: Westport
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Katherine Hansen | MLS # 3670389 | Active
168 Broad Sound Place -- 6 BR, 6.4 BA
Price: $6,995,000 (9789 sqft)
Subdivision: The Point
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Ivester Jackson | MLS # 3472208 | Active
125 Quiet Waters Drive -- 5 BR, 6.3 BA
Price: $6,499,000 (9316 sqft)
Subdivision: Northwood
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Trump International | MLS # 3665649 | Active
109 Conway Court -- 5 BR, 6.2 BA
Price: $5,850,000 (8688 sqft)
Subdivision: The Point
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Ben Bowen Properties | MLS # 3650716 | Active
16505 Jetton Road -- 5 BR, 5.2 BA
Price: $5,500,000 (8127 sqft)
Subdivision: Lake Norman
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Lead 2 Real Estate | MLS # 3681168 | Active
16315 Belle Isle Drive -- 5 BR, 6.2 BA
Price: $3,850,000 (9385 sqft)
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Ivester Jackson | MLS # 3619940 | Active
21123 Torrence Chapel Road -- 5 BR, 5.3 BA
Price: $3,750,000 (8249 sqft)
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Ivester Jackson | MLS # 3448085 | Active
19125 Peninsula Point Drive -- 6 BR, 7.2 BA
Price: $3,699,000 (11689 sqft)
Subdivision: The Peninsula
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Carlyle Properties | MLS # 3445959 | Active
16915 Shipswatch Place -- 5 BR, 5.3 BA
Price: $3,500,000 (7380 sqft)
Subdivision: The Peninsula
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Ivester Jackson | MLS # 3585036 | Active

Listings 1 - 20 of 263   next

Lake Norman Waterfront Condos for Sale

Lake Norman condos

Listings 1 - 20 of 28   next

18615 Vineyard Point Lane -- 3 BR, 2 BA
Price: $569,900 (1264 sqft)
Complex: Vineyard Point
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Michael Toste | MLS # 3683630 | Active
18816 Nautical Drive -- 3 BR, 2 BA
Price: $399,000 (1333 sqft)
Complex: Admirals Quarters
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Paul Yancey | MLS # 3685657 | Active
1235 Torrence Circle -- 3 BR, 2 BA
Price: $379,900 (1454 sqft)
Complex: Newport
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Michael Toste | MLS # 3683561 | Active
18730 Nautical Drive -- 2 BR, 2 BA
Price: $249,900 (1016 sqft)
Complex: Cypress Point
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Debi Gallo | MLS # 3682735 | Active
103 Cove Key Lane -- 3 BR, 3.1 BA
Price: $950,000 (3724 sqft)
Complex: Cove Key
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Coldwell Banker Realty | MLS # 3645685 | Active
18716 Nautical Drive -- 3 BR, 2.1 BA
Price: $749,900 (1847 sqft)
Complex: Commodores Landing
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Allen Tate Lake Norman | MLS # 3670368 | Active
20609 Cutter Court -- 3 BR, 2.1 BA
Price: $729,000 (2430 sqft)
Complex: Pointe Regatta
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Leonard Ryden Burr | MLS # 3669303 | Active
18507 Vineyard Point Lane -- 2 BR, 2.1 BA
Price: $615,000 (1679 sqft)
Complex: Vineyard Point
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RE/MAX Executive | MLS # 3686698 | Active
166 Beacon Drive -- 3 BR, 3.1 BA
Price: $500,000 (3686 sqft)
Complex: Waterfront at Langtree
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EXP REALTY LLC | MLS # 3674766 | Active
17810 Half Moon Lane -- 3 BR, 2 BA
Price: $489,000 (1464 sqft)
Complex: Half Moon Bay
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Coldwell Banker Realty | MLS # 3654503 | Active
146 Beacon Drive -- 3 BR, 3.1 BA
Price: $479,990 (3264 sqft)
Complex: Waterfront at Langtree
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NVR Homes, Inc./Ryan | MLS # 3671937 | Active
146 Beacon Drive -- 3 BR, 3.1 BA
Price: $415,990 (3152 sqft)
Complex: Waterfront at Langtree
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NVR Homes, Inc./Ryan | MLS # 3671936 | Active
125 Lanyard Drive -- 3 BR, 2.1 BA
Price: $349,990 (2178 sqft)
Complex: Waterfront at Langtree
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NVR Homes, Inc./Ryan | MLS # 3682758 | Active
18520 W Catawba Avenue -- 3 BR, 2.1 BA
Price: $339,000 (2373 sqft)
Complex: Harborside
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Coldwell Banker Realty | MLS # 3683255 | Active
19242 Lake Norman Cove Drive -- 3 BR, 2.2 BA
Price: $329,000 (2388 sqft)
Complex: Lake Norman Cove at Jetton
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Home Ventures Realty | MLS # 3682111 | Active
948 Southwest Drive -- 2 BR, 2 BA
Price: $309,900 (926 sqft)
Complex: Southpoint
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Wilkinson ERA Real | MLS # 3631614 | Active
550 Cowans Villa Road -- 3 BR, 2.1 BA
Price: $306,030 (2200 sqft)
Complex: The Villas of Cowans Ford
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Keller Williams | MLS # 3666666 | Active
104 Helm Lane -- 3 BR, 2 BA
Price: $305,990 (1978 sqft)
Complex: Waterfront at Langtree
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NVR Homes, Inc./Ryan | MLS # 3686261 | Active
18817 Silver Quay Drive -- 3 BR, 2.1 BA
Price: $305,700 (1570 sqft)
Complex: Silver Quay
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JM Wheeler | MLS # 3625540 | Active
135 Beacon Drive -- 3 BR, 2.1 BA
Price: $303,990 (1782 sqft)
Complex: Waterfront at Langtree
→ More info
NVR Homes, Inc./Ryan | MLS # 3686241 | Active

Listings 1 - 20 of 28   next