EinAustin wrote: ↑Thu Nov 15, 2018 5:03 pm
I'm a real estate broker and thought it would be interesting to look at the Zestimate history for a home that closed today.
9/30 - Zestimate was $421k.
10/19 - Home was listed for $510k.
10/31 - Zestimate increased to $482k.
11/15 - Sold for $513k.
Something I thought was interesting is the comparable homes they were using.
There were 3 other homes with the same floorplan in this section of the neighborhood that sold this year.
The first was a FSBO and the owner said he sold it for $440,000. Zillow was showing that as a comparable property.
The other 2 homes with the same floorpan I was the listing agent for and sold for $501k and $504k. Neither of those were listed as comparable properties. All 4 of these homes have the same floorplan, same schools and are the same age.
I agree that Zillow estimates make no sense. I updated the incorrect information listed by Zillow on their site for our home about a year ago, adding additional square footage and a bathroom, all pre-existing since it was built. I also added narrative, listing the view, the park, and the upgrades. It made no appreciable difference in Zillow's estimate. Our home is by far the most desirable on the cul de sac, being the only one with a view of the ocean, extensively updated, and located next to a city park. It is listed as having the least value on the block, even with more square footage than most of the others and on a larger lot. All of the homes were built in the same year, 50 years ago.
Unfortunately for sellers, unsophisticated prospective buyers without an agent treat Zillow estimates as gospel because they don't know any better. They will look at what they see as an inflated sales price based on an unrealistic Zestimate, and move on. Luckily, when they get serious there are RE agents who can provide a reality check.