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 261   next

211 Quaker Road -- 4 BR, 3.1 BA
Price: $3,999,995 (5428 sqft)
Subdivision: The Point
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Dom DeMatteo | MLS # 3880177 | Active
200 Cape Cod Way -- 4 BR, 5.1 BA
Price: $2,850,000 (5833 sqft)
Subdivision: The Point
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Dom DeMatteo | MLS # 3903989 | Active
20521 Lagoona Drive -- 3 BR, 2.1 BA
Price: $1,550,000 (2263 sqft)
Subdivision: Biscayne Park
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Bobbie Little | MLS # 3909879 | Active
135 Holton Lane -- 4 BR, 6.1 BA
Price: $1,150,000 (6231 sqft)
Subdivision: Northington Woods
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Brigitte Perry | MLS # 3908526 | Active
149 Malibu Road -- 4 BR, 2.1 BA
Price: $895,000 (3261 sqft)
Subdivision: Malibu Pointe
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Beth Welch | MLS # 3912674 | Active
101 Wildiris Drive -- 4 BR, 3.1 BA
Price: $678,000 (3205 sqft)
Subdivision: The Harbour at the Pointe
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Reneé Austin Elkin | MLS # 3925027 | Active
7545 Windy Pine Circle -- 3 BR, 2.1 BA
Price: $650,000 (2538 sqft)
Subdivision: Sandpiper Bay
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Karen Edmondson | MLS # 3908854 | Active
122 Catawba Air Road -- 3 BR, 2 BA
Price: $535,000 (1514 sqft)
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Karen Browder | MLS # 3897724 | 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
18601 Bluff Point Road -- 4 BR, 4.1 BA
Price: $4,900,000 (5529 sqft)
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RE/MAX Metro Realty | MLS # 3910340 | Active
2810 Cherry Lane -- 6 BR, 9.1 BA
Price: $4,800,000 (12813 sqft)
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Lake Homes & Property | MLS # 3917507 | Active
18103 Harbor Light Boulevard -- 5 BR, 6.2 BA
Price: $4,600,000 (7678 sqft)
Subdivision: The Peninsula
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Beycome Brokerage | MLS # 3911077 | Active
114 Nautical Point Court -- 5 BR, 6.1 BA
Price: $4,500,000 (11714 sqft)
Subdivision: Nautical Point
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Ivester Jackson | MLS # 3901052 | Active
123 Potomac Lane -- 5 BR, 5.1 BA
Price: $4,300,000 (4970 sqft)
Subdivision: The Preserve at Windsor Pointe
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Nestlewood Realty, LLC | MLS # 3916791 | Active
151 Easton Drive -- 5 BR, 6.2 BA
Price: $4,200,000 (10713 sqft)
Subdivision: The Point
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Premier Sotheby's | MLS # 3898371 | 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 -- 5 BR, 4.3 BA
Price: $4,199,000 (6455 sqft)
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Fathom Realty | MLS # 3905895 | Active
20911 Cinnamon Tree Lane -- 5 BR, 4 BA
Price: $3,800,000 (5123 sqft)
Subdivision: Keel Bay
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Fathom Realty | MLS # 3922765 | Active
22531 Torrence Chapel Road -- 5 BR, 6.1 BA
Price: $3,750,000 (7472 sqft)
Subdivision: Country Club Shores
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Keller Williams Lake | MLS # 3881699 | Active
18432 Balmore Pines Lane -- 4 BR, 5.1 BA
Price: $3,750,000 (7245 sqft)
Subdivision: The Peninsula
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Carlyle Properties | MLS # 3891627 | Active

Listings 1 - 20 of 261   next

Lake Norman Waterfront Condos for Sale

Lake Norman condos

Listings 1 - 20 of 68   next

18651 Vineyard Point Lane -- 3 BR, 2 BA
Price: $609,500 (1285 sqft)
Complex: The Moorings
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John Rhodes | MLS # 3893733 | Active
125 Capital Avenue -- 3 BR, 2.1 BA
Price: $440,000 (2011 sqft)
Complex: Morrison Plantation
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Michele Plaisance | MLS # 3908562 | Active
614 Portside Drive -- 3 BR, 2.1 BA
Price: $885,000 (1707 sqft)
Complex: Portside
→ More info
Allen Tate Lake Norman | MLS # 3914017 | Active
637 Williamson Road -- 3 BR, 2.1 BA
Price: $695,000 (1602 sqft)
Complex: Harbor Point Village
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Century 21 Lawrie | MLS # 3920590 | Active
18721 Skysail Court -- 4 BR, 3.1 BA
Price: $684,000 (2322 sqft)
Complex: Harborside Townhomes
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RE/MAX Executive | MLS # 3879491 | Active
9015 Charles Francis Lane -- 3 BR, 3.1 BA
Price: $599,990 (2654 sqft)
Complex: The Retreat At West Catawba
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David Weekley Homes | MLS # 3905435 | Active
8107 Houser Street -- 3 BR, 3.1 BA
Price: $585,739 (2726 sqft)
Complex: The Retreat At West Catawba
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David Weekley Homes | MLS # 3894423 | Active
9011 Charles Francis Lane -- 3 BR, 3.1 BA
Price: $581,354 (2748 sqft)
Complex: The Retreat At West Catawba
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David Weekley Homes | MLS # 3905480 | 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
19307 Beaufain Street -- 3 BR, 2.1 BA
Price: $563,900 (2739 sqft)
Complex: St Philip Square
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Bean Realty Group LLC | MLS # 3905163 | Active
19701 Bethel Church Road -- 2 BR, 2 BA
Price: $550,000 (1344 sqft)
Complex: Cornelius Village Condos
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Verge LLC | MLS # 3924280 | Active
8121 Houser Street -- 3 BR, 2.1 BA
Price: $549,498 (2379 sqft)
Complex: The Retreat At West Catawba
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David Weekley Homes | MLS # 3892752 | Active
9003 Charles Francis Lane -- 3 BR, 2.1 BA
Price: $537,668 (2379 sqft)
Complex: The Retreat At West Catawba
→ More info
David Weekley Homes | MLS # 3905644 | Active
9007 Charles Francis Lane -- 3 BR, 2.1 BA
Price: $527,243 (1977 sqft)
Complex: The Retreat At West Catawba
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David Weekley Homes | MLS # 3905580 | Active
8200 Houser Street -- 3 BR, 2.1 BA
Price: $522,118 (2379 sqft)
Complex: The Retreat At West Catawba
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David Weekley Homes | MLS # 3877990 | Active
18520 W Catawba Avenue -- 3 BR, 2.1 BA
Price: $450,000 (2373 sqft)
Complex: Harborside
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Coldwell Banker Realty | MLS # 3925034 | Active
114 Mint Avenue -- 3 BR, 2.1 BA
Price: $450,000 (2167 sqft)
Complex: Villas at Morrison Plantation
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Allen Tate | MLS # 3908729 | Active
18804 Ramsey Cove Drive -- 3 BR, 2.1 BA
Price: $447,000 (1744 sqft)
Complex: Harborside Townhomes
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Lake Norman Realty, | MLS # 3922375 | Active
8443 Sonata Court -- 3 BR, 3 BA
Price: $425,000 (2296 sqft)
Complex: 3 Cherry Way
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Keller Williams | MLS # 3913565 | Active
18431 The Commons Boulevard -- 3 BR, 2.1 BA
Price: $415,000 (2093 sqft)
Complex: Harborside Townhomes
→ More info
WEICHERT, REALTORS- | MLS # 3920558 | Active

Listings 1 - 20 of 68   next