What is Zillow really good at? Misrepresenting thousands of dollars that affect home sellers and buyers.
Somehow Zillow has managed to convince some sellers and buyers that Zillow’s Zestimate is the holy gospel regarding a home’s value. I ask my clients how is a computer algorithm supposed to accurately estimate your home’s value if it’s never seen the inside and outside?
Zillow is nowhere close to being a local real estate expert in any community. According to Zillow – The Zestimate is created by an automated software process, designed by statisticians, and there is no ability for humans to manually alter the Zestimate for a specific property.
“But Zillow says….is often said by some of my clients” says Jennifer McCoy, Broker/Owner of McCoy-Freeman Real Estate – “Sellers and buyers should trust an experienced Realtor in regards to a home’s value” says McCoy.
So how accurate is Zillow’s Zestimates? See for yourself here in Brevard County, Florida.
972 Cardon Drive
972 Cardon Drive was listed for $164,900 and just sold for $163,000. The Zestimate says $137,458. Can you just imagine if this seller actually sold their home for the Zestimate of $137,458 instead of listing it with a Realtor and selling for $163,000? That’s -$26,542 for that seller.
836 Limerick Drive
836 Limerick Drive listed for $389,900 and just sold for $372,000. The Zestimate says $349,595. That’s -$22,405 for that seller.
805 Mallard Road
805 Mallard Road listed for $229,900 and just sold for $215,000. The Zestimate says $186,679. That’s -$28,321 for that seller.
3515 Sansom Circle
3515 Sansom Circle was listed for $305,000 and just sold for $275,000. The Zestimate says $328,101 and the best part of it all for this home seller is that Zillow says it’s not for sale nor mentioning that there is a pending sale.
1545 Holly Avenue
1545 Holly Avenue listed and sold for $184,000 on July 11th 2016. The Zestimate says $175,799. Zillow however says this home sold for $109,800 on 2/17/16.
4025 Waterloo Place
4025 Waterloo Place was listed for $458,900 and just sold for $432,500. The Zestimate says $467,991 and, once again, not for sale.
200 S Sykes Creek Pkwy.
200 S Sykes Creek Pkwy. #204 was listed for $199,900 and just sold for $175,000. The Zestimate says $161,176. This time, Zillow did display that this listing is in the pending sale status.
If you dig deep enough in Zillow’s website you will find this: 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)
I have a deal for you…
For those buyers still saying “But Zillow says…,” I have a real estate deal for you. Zillow says my ocean view condo at 425 Pierce Avenue in Cape Canaveral Zestimates the value at $686,287. My listing price is $659,900. Better hurry and make an offer before the Zestimate goes higher.