Inaccurate Zillow ‘Zestimates’ a source of conflict over home prices
By Ken Harney
Excerpts: Zillow CEO Spencer Rascoff…says Zestimates are “a good starting point” but that nationwide Zestimates have a “median error rate” of about 8%.
Shoppers, sellers and 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.
My comments: Ken Harney is a long time, nationally syndicated real estate writer. Hopefully, people will read this article. Lots of people I know tell me what “values” they are getting from Zillow. Zillow collects lots of sales data. But, I suspect they are using a radius search or something else that does not match a neighborhood at all for their AVM. I do love the Zillow data and graphs though. Look ‘behind” the Zestimate. As we all know, AVMs work best in conforming homes in conforming tracts less than 10 years old, and goes downhill from there.